Everyone who starts investing or trading in the share market is always on the look-out for ways to make their investments more profitable. Whether you want to diversify your portfolio, grow your wealth or earn higher dividends, your goals are pretty close to every stock trader ever.
But in the bigger scheme of things, have you ever wondered how to earn money in share market daily? If you have, we might have the answer for you. Read on to find out.
Tips on how to earn money in share market daily
- Multiple trades, small profits – The key to making money in the share market daily is to focus on modest gains by doing multiple trades. Keep in mind that making 2-3% profit in a single transaction is not realistically possible frequently. However, with a strategy of multiple low-volume trades, you may increase your number of wins even though the size of the gains might be smaller. As a trader, it is up to you to make profits every time you get an opportunity. This strategy is one of the answers on how to earn money in share market daily.
- Watch out for the stocks in the news – Want to know which stocks to buy and which ones to sell? Or which company shares are performing better and why? The answer to all your questions related to the share market can be found in the news. All you have to do is which story to believe and which one to ignore. It’s important to read information coming through reliable sources as they understand what most traders may not. News reports can tell you a lot about the stocks in the news and which one you should trade to earn yourself a decent profit. Consider any information with a pinch of salt, do your own research before believing the news blindly and investing your money in stocks that just won’t get you the desired results. Be cautious about financial rumours, especially the ones that will affect your trading decisions.
- Use the stop-loss order – This is one of the essential stock market rules by which every trader should swear. Use the ‘stop-loss’ order to minimise losses. It’s an automatic order that allows traders to buy or sell a stock once its price has reached a specific level. Using the stop-loss order can help you protect your capital. Most traders consider this feature essential for increasing profitability in the share market. This feature also protects the trader from various market fluctuations. You want to earn better daily returns? Implement the stop-loss order in your everyday trading transactions.
- Reduce trading costs – As a trader, you need to remember that every trade comes with a price. You as a trader will have to incur expenses irrespective of the profit or loss you make. So, when you make many trades, you also spend a great deal on those which you could have saved if you made planned decisions. Plan and make a list of which stocks to buy and which to sell. Reducing all your other expenditures to a minimum can help you earn a daily profit on the share market.
How to select stocks to earn money in share market daily?
Deciding what to spend your money on in the world of share market is a tough decision. There are plenty of factors you need to consider before you make the call on what will help you earn money in the share market daily. Below are some tips to help you make the final decision
- Price Movement: One way to predict which way the stock will go is to keep an eye on the price movement. Study the shares you want to trade in and see how the price is moving. The ups and downs should be a suitable indication of how profitable trading in that company’s stock is going to be.
- Volume: Volume trend is another way to predict the profitability of the stock. How many shares of the said stock were purchased in the last few days? A surge in the volume is an indication that the stock is performing well and will continue to rise. Trading in such stocks should help you generate daily profits in the share market
- Supply-Demand: As a trader, you need to know the supply and demand of stocks you’re interested in trading. Identify if the number of shares up for sale is more. If yes, you might want to reconsider buying that stock. If the number of shares for sale is low, the reverse is applicable. You cannot reply on the bid or the numbers visible on the screen to know if the quantity for sale is more or if the buy quantity is more. Only a technical analysis will help you arrive at a conclusion and identify the supply and demand in individual stocks.
The share market is unpredictable. Even the most experienced traders with advanced tools are not always successful at predicting market movements. There are times when all factors indicate a rising market; however, despite these, there might still be a decline. Most of these factors are purely indicative and there are no guaranteed solutions that traders can derive from them. So, if you find the market moving against your expectations, it is best to exit the position and avoid huge losses.
Earning money is not impossible especially if you go armed with sufficient knowledge and experience. With these tips and tricks, you can try your hand at making a decent profit in the share market daily. Just remember that the ability to make profits every day is in your hands. It all depends on the decisions you make and the ones you hesitate about. Keep a clear head and trade like there is no tomorrow!