How Much Money Can You Make Trading Stocks? Here are the Points (2024)

27 February 2024

5 min read

How Much Money Can You Make Trading Stocks? Here are the Points (1)

Trading in the Stock Market means buying and selling shares on the same day. Intraday traders take the help of technical indicators, monitor charts, and implement momentum strategies to make the most of trading.

Traders square off their positions at the end of the trading day. It requires monitoring the stock markets closely and regularly than if you were investing for the longer term.

Continue reading to discover how much money you can make by Trading Stocks.

How Much Money Can You Earn by Trading?

There is often a question asked by many people, how much one can earn in stock market in India or how much money can you make from stocks in a month? Well, there is no limit to how much you can make from stocks in a month.

The money you can make by trading can run into thousands, lakhs, or even higher. A few key things that intraday profits depend on:

  • How much capital are you putting in the markets daily?
  • How much risk can you take in your bets?
  • Trading expertise and knowledge of technical indicators.
  • Patience.

You may be able to double your money with a single trade or even halve it, depending on your ability to judge intraday metrics.

You may be wondering, “How Much You Can Earn from The Stock Market?”. Well, the earnings can go up to Rs. 1 lakh a month or even higher if you are skilled enough and your strategies are in place.

Does this mean all intraday traders are in profit, or is intraday trading profitable? Not at all. In fact, some studies suggest that 95% of Indian traders lose money in the markets. That is a pretty big chunk of traders.

Hence, to at least break even, let alone book profits, one needs to be thoroughly briefed about intraday trading and the various strategies involved.

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Points to Note While Trading

  • Stop-Loss

Stop-Loss is a trading process that allows you to cut your losses while Trading in the Stock Market. When you put a stop loss criterion at a certain price of your stock, it is automatically sold when the price falls below the stop-loss price level.

For example, if you bought shares of a company X at Rs 300 per share and you put a stop-loss order at Rs 260. So, if the price falls to Rs 260, your shares will be sold automatically, thereby reducing your loss to just Rs 40 per share.

▶️ Read more on Groww: Introduction to Intraday Trading Strategies

  • Through Background Research

Intraday trading requires a lot of homework. Making quick bucks, which intraday trading essentially offers, has to be backed by thorough research of the company.

Traders have to be skilled in charts, oscillators, trading metrics, ratios, monitoring volume, and many other indicators that require training. Stock market returns are volatile, more so when you are buying and selling on the same day. Hence, proper research and upgrading your skills are essential.

  • Regularly Monitor Your Investments

One of the most important qualities to be successful in the Stock Market is to monitor your investments or portfolio on a regular basis.

Monitoring your portfolio on a regular basis helps you to sell your stocks immediately if you think the prices are likely to correct in the future. This is required even more in intraday trading. This is because your daily activity can decide your position (profit/loss) in the market and financial condition.

You can also earn a huge number of profits from stock trading or by selling your stocks at the time when they are at their peak price, but you need to go back and monitor your portfolio on a real-time basis to know when is the right time to do the same.

  • Requires Patience

If you want to make money from high-return stocks, then the very basic requirement is patience. Any decisions taken on a whim can make you lose a lot, especially when traders deal with large sums of money.

  • Avoid Herd Mentality

One of the most gruesome mistakes one can commit in the stock market is to buy or sell just because everyone else is doing the same. As an investor/trader, you have to understand that your financial goals are not the same as another person. Day

Conclusion

In conclusion, if you buy or sell a stock, it should be based on your research. In other words, you may buy or sell a stock because the timing is right, the fundamentals of the company have changed, or there are certain regulatory changes that may impact your holding.

Above all, you should buy or sell stocks only if it is within your financial capacity.

Happy Investing!

You may also want to know

1.

How to Invest in Share Market

2.

How to Read Stock Charts

3.

How Does the Stock Market Work

4.

How to do Valuation Analysis of a Company

5.

How to Open a Demat Account Online

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing.Investment in securities market are subject to market risks, read all the related documents carefully before investing.Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or otherinstruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is noassurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd)Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments isnot indicative of their future performance.

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How Much Money Can You Make Trading Stocks? Here are the Points (2024)

FAQs

How much money can you make trading stocks? ›

The stock market's average return is a cool 10% annually — better than you can find in a bank account or bonds. But many investors fail to earn that 10% simply because they don't stay invested long enough. They often move in and out of the stock market at the worst possible times, missing out on annual returns.

How much money is a point in stocks? ›

For stocks, one point equals one dollar. So when you hear that a stock has lost or gained X number of points, it is the same as saying the stock has lost or gained X number of dollars.

Is it possible to make a lot of money trading stocks? ›

Can You Make a Lot of Money in Stocks? Yes, if your goals are realistic. Although you hear of making a killing with a stock that doubles, triples, or quadruples in price, such occurrences are rare, and/or usually reserved for day traders or institutional investors who take a company public.

How do you calculate how much money you can make from a stock? ›

Take the selling price and subtract the initial purchase price. The result is the gain or loss. Take the gain or loss from the investment and divide it by the original amount or purchase price of the investment. Finally, multiply the result by 100 to arrive at the percentage change in the investment.

Can I make a living from trading stocks? ›

Trading is often viewed as a high barrier-to-entry profession, but as long as you have both ambition and patience, you can trade for a living (even with little to no money). Trading can become a full-time career opportunity, a part-time opportunity, or just a way to generate supplemental income.

Can I make money day trading? ›

You can make money day trading, but you'd be in very limited company. The paradox of day trading is that it may seem like a good idea, depending on how the stock market is performing. Day trading is essentially a play on the short-term volatility (or price movement) of a stock on any given day.

How much is 1 point in trading? ›

Points typically refer to futures trading. One point is the smallest price increment change that can occur on the left side of the decimal point. For example, S&P 500 E-Mini (ES) futures might experience a price change from 1314.00 to 1315.00, which is a price change of one point.

How to earn money from stocks? ›

Investors, meanwhile, can make money from stocks in 2 ways:
  1. Share appreciation. When a company does well financially or becomes more desirable, the value of its stock can increase. ...
  2. Dividends. Certain companies may decide to share a portion of their financial success with investors through cash payments called dividends.

How many shares should I buy to make a profit? ›

The number of shares you should buy depends on the price of the stock and how much money you are willing to invest. For example, if a stock is worth $10 and you have a $10,000 portfolio, a good number of shares would be between 20 to 100 depending on your risk tolerance.

Can I be a millionaire by trading? ›

In conclusion, while it is possible to become a millionaire through forex trading, it is not a guaranteed path to wealth. Achieving such financial success requires a combination of education, skills, strategies, dedication, and effective risk management.

Is day trading gambling? ›

Day trading is often compared to gambling due to the similarities in risk and uncertainty involved. Both activities involve making speculative bets on the outcome of certain events, whether it's the movement of stock market prices or the roll of a dice.

How hard is day trading? ›

Day trading is challenging due to its fast-paced nature and the complexity of the financial markets. It requires traders to make quick decisions based on real-time information, which can be overwhelming, especially in volatile market conditions.

How much can $1 get you in stocks? ›

Investing $1 a day can turn into tens of thousands of dollars over a long period of time. You can get started by opening a brokerage account and researching low-cost index funds.

How many stocks do you need to make money? ›

While it's easy to imagine how diversifying to avoid that risk is smart, there's no hard and fast number of stocks investors should own. Instead, researchers have generally concluded that owning 20 or more stocks is best for reducing the risk one lousy bet swamps a portfolio.

Is cash app stock worth it? ›

Cash App Investing is a beginner-friendly platform for banking and investing on the go. If you're looking for simplified, low-cost trading, Cash App may be worth looking into. However, other low-cost investing apps for beginners offer more investment options, more account options, and better resources.

Can you make $1,000 a day trading stocks? ›

It can also be very risky. While it's not outside the realm of possibility to earn $1,000 a day by day trading, reaching that level on a consistent basis requires several things: knowledge, discipline and a lot of cash to start with.

How much money do I need to invest to make $1000 a month? ›

A stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income, Mircea Iosif wrote on Medium. “For example, at a 4% dividend yield, you would need a portfolio worth $300,000.

How much money can you realistically make in the stock market? ›

The average stock market return is about 10% per year, as measured by the S&P 500 index, but that 10% average rate is reduced by inflation. Investors can expect to lose purchasing power of 2% to 3% every year due to inflation.

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