Today, we are going to give you some valuable tips on how you can make money with Stock Market Investing/Day Trading. We have all heard about how people have made fortunes through stock trading. However, the downside is that it is equally risky – and you could make losses too.
The stock market allows you to participate in a specific economy’s progress, and make money online, by investing in the companies listed on specific stock exchanges. Given the risk component to investing in equity markets, people often don’t prefer making money this way.
However, with some level of research, understanding of business cycles, as well as knowing how to correlate business information and updates to industry performance, anyone can easily learn how to invest in the stock market and make money with Stock Market Investing/Day Trading.
Tips for making money by trading in the stock markets
Initially, it might seem impossible to do so without expert advice, but rest assured, if you are patient and develop self-discipline in studying stocks, you definitely can make money with Stock Market Investing/Day Trading.
- Study Top Stocks
To make money online with stock trading, you need to first study the best top stocks on the stock market. There are thousands of stocks, but it is advisable you focus on just the top/’A’ category stocks. These stocks have sound financials and also don’t exhibit much volatility. Top stocks are literally the reflectors of a given economy. They need to be growing or sustainable and hence you stand to benefit two-fold – one is that you will never get hit with extreme volatile price increases and decreases, there is stability. Secondly, these are highly liquid stocks, so you don’t need to worry that you will get stuck with shares in case the price goes down.
- Invest in a disciplined manner and not out of impulse
When you are attracted to a particular stock, do not invest out of impulse. Study it well – its history, growth over a period of 3, 5 & 10 years. Also pay attention to the company not complying with regulations, unethical practices and having governance issues. You should be able to view all such information on popular stock market portals. Once you have satisfied yourself of the stock you are tracking, then draw up a plan about how much and which day (rather what level) you want to buy it. Keeping a ‘buy’ target helps you keep noticing whether your desired stock is getting closer to your buy-target levels and helps you buy decisively, rather than impulsively. Otherwise, you will not be able to make money with Stock Market Investing/Day Trading.
- Have a Plan in Place – keep Targets
Once you have invested in a stock, it doesn’t make money online automatically. Its price keeps fluctuating depending upon factors like monetary policies, demand, sales, etc. Just like you need to have a ‘buy’ target, you need to have a ‘sell’ target too. When you plot your ‘sell’ target on your trading account, you get notified that you have reached your target and can now choose to sell if you want. This way you can free up your invested bandwidth and cash out, making a profit. Planning & sticking to a plan help you make money with Stock Market Investing/Day Trading.
- Monitor your portfolio to check progress and modify
To make money online with trading, you need to monitor your holdings regularly to understand how they are performing. If you start observing down trends on some stocks, don’t panic; understand why, by reading news and business information. This way you will be confident if you want to stay invested or if you should sell out and cap your losses to a defined limit.
- Keep no room for emotions
Often people who have made money several times from a particular stock tend to think that stock is lucky for them and despite adequate indicators towards a downside, they don’t sell out, thinking some magic will happen and the stock prices will soar up some day. Strictly avoid getting personal and emotional about stocks, if you want to make money online. YOU are not driving that company; it is not yours! You have no idea about future performance and if the current performance reports are indicating otherwise, then cash out before the downfall hits! There is no room for emotions if you want to make money with Stock Market Investing/Day Trading.
- Don’t borrow funds to invest
Often people get lured into the stock market and then, they borrow money in order to invest in stock markets and often because they received some internal tip who says they should invest a big amount to make money online. Please don’t go down this lane at all. To make money with Stock Market Investing/Day Trading, you want to start small, learn through experience regularly (even 15-30 mins a day is good enough) and grow gradually. You will soon be making good money which you can re-invest and eventually expand your portfolio.
- Day Trading
Once you have the know-how and grip on how the stock markets are performing, you can even consider day trading, to make money with Stock Market Investing/Day Trading. In this strategy, to make money online, you don’t need to hold the stock at all. Rather you need to trade in large volumes, where you buy and sell the stock, the same day – hence the term ‘Day Trading’. When you are a regular in the stock markets, then you get to know the volatility ranges of stocks. As such you will be able to more or less gauge if a stock is going uphill for that day. You need to buy the stock at say level x and place a sell trigger at x + 5% (or a realistic target). You can also cap your losses by specifying a limit; this will save you from losing money in case the stock reverses. This is an interesting strategy with which regular investors make money with Stock Market Investing/Day Trading.
No matter whether you choose to trade in delivery (holding of stocks) or day trading, you can make attractive amounts of money that will keep you glued to his art.
