To make steady income online you have to learn and work in different fields like freelancing or doing own e-commerce business online . While online business like selling digital services , becoming a tutor online or working as freelancer requires time and patience to steady income over time . Apart from this , there are also other good sources of indirect income which you can do while you are working as full time employee in a company or managing your own business . A good source of income for such situation can be the Indian Stock market where you can invest in some equity or debt instruments to make some steady income other than your regular profession or business income.
To trade and earn some bucks out of any stock market is difficult and also requires some deep knowledge about the instrument being traded or the investment being undertaken . But it is not that much hard to invest or trade , if you learn all basics about stock investment , chart reading , price analysis , stock analysis , technical analysis , price action and trading strategies .
If you want to make a second source of Income in Share Market other than your regular income , or want to quit your job by making some extra profits or appreciation in your investment through Indian Share Market then do read this post carefully .
Indian Stock Market provides an opportunity to every Indian who is above the age of 18 to open a Demat account online and start investing in Share market to earn good income . While it is a Myth , that those who enter stock market end up trading and their career in trading by making huge losses in it . In the Indian Stock market , there are more than 1 lakh companies in the entire Share Market system where you can invest in a share of as low as Rs 10 and a maximum of Rs 1 lakh in a single share of a company .
Traders in the Indian share market , make daily consistent profits and losses in by trading in different securities and derivatives of the market like :
- NIFTY 50
- Bank Nifty
- Equity
- Mutual Funds
- Futures and Options
- Commodity
- Currencies
- Debt Funds etc
These securities on a positive note provides annual return upto 200 percent and sometimes upto 1300 percent of the buy price while sometimes , these investment go into big losses and can even end up the entire capital of the Investor. Trading in the Indian Share market is mostly done in Index , Future and options , Commodity and Currency derivatives and Stock Options.
Trading involves risk of huge changes in capital of the trader due to high volatility in the index or different currencies and future options . Due to sharp movements some times a trader has to face big losses while on the other hand after doing deep analysis , a trader makes about 100 to 200 percent or near about 500 percent profits in the share market also .
To understand , with an example if an option buyer trade in an option of Bank NIFTY then on different movements he has to either buy the Call Option or the PUT Option . In case the Call option runs , his investment or trade value goes by 25 shares included in a lot of Bank Nifty . In case of other side movement , trader might also have to bear big losses .
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The Indian Share Market is too volatile to be predicted to go upside or downside. It can be said that those investing huge amount in the market , might find it difficult to recover their capital in case of sudden sharp movements. Considering a full time trading business in Indian Stock Market is never recommended because investment in share market involves huge risk and those already working since years are pro traders of the market or the institutional investors. Facing completion direct from these big institutional investors can sometimes lead to big losses.
To start a full fledge business of stock trading and investment , one must have the required qualification and the experience of dealing with fast movements in the stock market . While trading in share market can be done to earn small and consistent profits which can be used to bear daily life expenses like making a steady income by trading in stock options or futures or currency .
You can start investing in stock options or Index options , if you don’t have a trader background . All option courses are available on different YouTube Channels on Internet like :
- Analysis with DT4B
- Analysis with Sunil Miglani
- Trading Strategies by Pushkar Raj Thakur etc
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To start trading career in Indian stock market , there is a need of special Analysis software’s , highly trusted Demat account and a Bank Account . With only these three things you can start your trading journey in the stock market . But how to decide whether a particular demat account company is trustable or not and how to choose a good trading analysis tool online ?
For higher and consistent profits ,at first you require a Demat Account in which you can place orders including that of Purchase order , Stop Loss order , After Market Orders , Before Market Orders , Swing Trade Orders etc . To make a deep analysis of the stock movement or index movements , you require an analysis tool with which you can watch the movements at different time frames and can built a strategy to make steady income in it . Also , you require a bank account with which you can add funds to your trading session whenever required .
The tools which you can use to start trading in Indian share market :
- Trading view Chart Analysis Tool
- Demat Account opened with Angel One or Zerodha
- Bank Account Opened with Any Bank
- Fast Internet Connection
- A Laptop
As a beginner , to start making income in Share market you cannot invest and long hold in equity shares as you require some experience of the technical analysis and the stock movement analysis to accurately predict whether the share will move upward or downward . But you can earn fast profits or can make good income with the most volatile options in the market i.e with Nifty 50 and Bank Nifty trading Options or with Futures of Both .
Options are contracts that are made to predict the price of the Index and those making correct estimation of the movement either on the Call Side or on the PUT Side are able to make good profits . In Option trading , trading can be done with a capital of as low as 15000 and trading can be done in two different techniques like :
- Option Buying
- Option Selling
To understand , both you can check this video for proper explanation of the difference between both .
Margin Trading in Indian Stock Market
Often beginners in the stock market are confused of whether to trade with margin or not and what margins do we get to trade in different securities . To understand , margin means the broker or stock broking company with which you have opened your Demat account , provides you an opportunity to trade in stocks and options with a less value to trade securities with a huge value .
Margin is used to buy more lots of a stock option or an Index option when you have less money . For instance , price of NIFTY Option CE 17500 is 200 , to buy one lot of 50 quantity which makes a price of 10000 you have to only pay 6000 or 7000 and you can trade upto such quantity .
For buying you purchase at 200 = 50*200 = 10000 (But actually paid after margin 6000)
For selling , you sell at 210 = 50*210 = 10500 (Actually paid after margin 6000 )
Here , on points up movement you got Rs 500 as profit on investing only 6000 instead of Rs 10000 . But you got profit on 10000 investment .
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Trading in the market timings is very essential to understand , as in some cases traders forget to close their position in the market where on the next day or on the same day they end up losing their entire capital in the investment . The Indian stock market for trading in stocks , stock options and Nifty options , the timing for trading has been settled at 9:15 am to 3:15 pm in the Indian Standard time Zone .
If any trader has bought any stock or any option in the market timing , he has to square off the position .i.e exit the position before 3:15 in order to book profits or losses or the entire capital would be wiped away by the market . In case , stocks or options are taken on holding or delivery basis then you can hold the position for the next day also . But no orders shall be processed after the market timing .
As beginner trader in Index options or Stock Options , expiry of the options is also an essential term to understand. To trade in options , you have to check what is the expiry of the option contract you have invested in ? . Generally option contracts comes with an expiry period of weeks , with every Thursday expiry and there are also contracts which are made for yearly closing , monthly closing .
If you have invested or holded an Option and the expiry period lapses , the option price will become zero and the entire fund invested in the option would become zero . So , it is important to know the expiry period of every future and option contract in share market .
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Conclusion
You can make consistent income in small fractions by investing in Options or Stocks in the Share market .Also , as it is a bit risky you cannot entirely depend on the market for your financial needs but you can trade in the market for making it a passive source of income . If you have any queries related to this post , then you can comment down in the comment section below .