How much Can I Earn in Trading: So friends, we all traders know that we can make money in trading and somewhere we also know that from trading we can make money very quickly. So we always have this question in our mind about it, especially when a new trader is in the market, how much money we can earn from trading?
If you are doing a job and are thinking today whether you will make passive income from trading or will make side income, if you start trading then. And you must have heard from many people that lakhs and crores can be made from trading, can one really earn so much?
Yes, it can definitely be earned. If you learn trading well and gain knowledge, become a disciplined trader with proper dedication, hard work and preparation, then you can also earn a lot of money from trading. So, today we will discuss in this article, how much money can be made from trading and what things you need to keep in mind to start it.
How much Can I Earn in Trading?
There is a common question that many people ask, how much can we earn from trading? Which is a wrong question because if you want to make money daily from trading then it’s very difficult.
Trading is a business, here you will get profit as well as loss, if you do trading correctly then you will get profit and if you do it wrongly then you will get loss, that’s why you have to be prepared for both.
In the share market, you are not joining any company where you will get a salary, that means in which you will get a monthly salary as soon as you come or you will get one salary per day. So, first of all, this question is wrong. Change your mind and think about how to do business.
Many successful traders make profits worth crores and lakhs from trading, which is true. According to SEBI’s report, only 11% of people are able to make money from trading and 89% of people are making only loss here and that is the reality of trading. [How much Can I Earn in Trading]
Trading is a profession that will test every nerve of your brain whether it’s your skills, mindset, technicals or emotions. Trading is not about knowledge, here you have to develop your skills and mindset also.
There are many such trades that make lakhs to crores in a single trade because their execution speed and decision-making are very strong, which helps them in making huge profits.
By investing in education, hard work, dedication, and preparation, you also can make lakhs to corers from trading. If you have a deep understanding of the market and you do trading by maintaining patience and discipline, then you can also make a lot of money from trading.
Read More: How to Be a Pro in Trading?
How Much a Trader Can Earn in a Day?
A trader can make a lot of money in one day depending on the type of trading they do, the strategies they use, how much capital they trade with, the market conditions and their risk appetite.
There are many types of traders like day traders, swing traders, scalpers and among them, there are experienced traders who have the skills, a solid strategy and can manage their risks effectively, they make consistent profits from trading.
Those who are beginners end up making unnecessary losses due to lack of a solid strategy and experience, that’s why a beginner should always focus on learning first. [How much Can I Earn in Trading]
The more capital a trader has, the more chances he has of making profits as well as losses because the bigger the capital a trader starts with, the more it will affect the potential earnings.
If a trader manages his risk effectively by setting proper stop loss and position sizing, it’s a great way to protect his capital and avoid unnecessary losses.
If we talk about earnings then if a trader’s capital is 10k then he can easily earn ₹500 to ₹1000 per day, assuming 1-2% daily return which is considered relatively high. And if the capital of a trader is 1 lakh to 10 lakh. He can easily earn 50k to 5 lakhs in a single day and if a trader has a bigger capital then he can earn 10 lakhs to 20 lakhs in a day.
Many traders are able to make consistent profit, that too daily, but the majority of traders are not able to make consistent profit because they do not have experience and proper strategy. To become profitable in trading, it requires education, experience, preparation, discipline and patience. [How much Can I Earn in Trading]
Read More: How to Control Emotions in Trading?
How Much a Trader Can Earn in a Month?
Whether any trader is new or old, how much profit he wants to make from trading depends on two things, first is the strategy. Many strategies exist in the world of trading and the risk-reward-ratios of all strategies are different.
The risks of many are very small and the rewards of many are very big, so if you make a profit there then due to the strategy, your risk-reward-ratio increases.
The second reason is that every trader comes to the market with different capital, hence the amount of capital with which you are trading depends on you. Most of the beginners who come into the market come with the wrong expectation that their capital of 10k should become 20k within a month i.e. double.
This is possible and the money also doubles but it does not happen as quickly as you are thinking, that’s why remove all the wrong expectations from your mind. When the market comes to give, you will get a return of 400% or 500% in a day.
If your capital is between 1 lakh to 10 lakh then your ROI (Return On Investment) should be 15 to 20% monthly. You always have to keep this ROI and if you convert it in a year or look at it in the long term, it becomes very high that means your capital will double many times. [How much Can I Earn in Trading]
There are many such traders who can make a return of 15 to 20% in a single trade, but many beginners do more trading in order to get more returns and at the same they incur losses, that’s why when you get 15 to 20% return in a month, you can reduce the number of trade in that month.
Points to Consider While Trading
Point 1: Having a Trading Plan & Stick to it
You will trade as per your trade plan. Suppose you have analyzed a stock and you have planned a buy side trade in it, then you will only buy. You should always do pre-market analysis which is very important, if this stock’s price comes to this level, I will buy and if it comes to any other level, I will sell.
You should always choose a strategy that suits your trading style and you should know when to enter and exit a trade. “Plan your trades, trade your plan”.
Point 2: Stop-Loss
You should always manage your risk by setting stop-loss orders. Many traders make the mistake of executing the trade but do not use the stop-loss or they set it in their mind that you should not do this at all.
Because it’s very important to save capital as a beginner, rather than making big profits. You should always make a rule that whenever you place a buy or sell order, along with it, your second order should also have a stop-loss. Determine how much of your capital you can risk on each trade, so you avoid unnecessary losses. [How much Can I Earn in Trading]
Point 3: Through Background Research
Intraday trading is very risky and volatile and you have to make quick decisions, that’s why before taking a trade in any stock, it’s important to research it thoroughly.
Traders will have to be skilled in oscillators, charts, volume, ratios and traders will have to keep an eye on financial news, technical indicators and also on market trends. Hence, it’s very important to do proper research, so that you can update your strategy regularly and gain knowledge about market analysis techniques.
Point 4: Requires Patience
If you want to become a successful trader then it’s very important for you to develop patience. Whenever you sit down to trade, you should have patience, so that you can find the right opportunity and execute your trade.
You should never execute trades forcefully because of which you will only make losses. So you should think about taking trades by sticking to your strategy, waiting for the right opportunity and maintaining patience.
Point 5: Don’t Follow the Crowd
From 9:15 am to 3:30 pm, you should always stay away from the crowd and social media when you are trading. During this time, if you follow any news channel or social media influencer, then you have to stay away from them because if you follow the crowd, then you get distracted and make wrong trade plans. [How much Can I Earn in Trading]
Bonus Point: Take Only 3 Trades in a Day
If you are in the initial stage and you are a beginner, then you should always focus more on risk management. You should take only 2-3 trades in a day. If you get profit in the first 2 trades, then you should not take the 3rd trade. But if you get an opportunity, you can take the 3rd trade.
But if you suffer a loss in the first 2 trades, then do not take the 3rd trade at all because by doing so you can become a victim of overtrading and make a huge loss. Hence, take only 2-3 trades a day, so that you can manage your risks and avoid significant losses.
Read More: 10 Best Websites for Stock Market News in India
Conclusion
Making profits in trading is a journey and it’s not a one-day game. It has to be done consistently and for this, you need to develop your mindset. Always try to correct your psychology and focus on continuous learning because by doing this you will start making money from every trade, whether monthly or daily.
I hope that you have liked the information given by us to know more about trading, you can also read our other articles too and if you need any information related to trading, then you can tell us by commenting below. [How much Can I Earn in Trading]
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Frequently Asked Questions (FAQs)
1. Can trading makes a lot of money?
Yes, making a lot of money from trading is absolutely possible and trading allows traders to generate high potential earnings. Many successful traders make a lot of money from trading because they have a solid understanding of the market, proper strategies and manage their risks effectively. If you are a beginner and you want to make a lot of money from trading, then you will also have to develop all these skills.
2. Is trading a good career?
Yes, trading can be a very good career for those who like to perform in challenging conditions and take risks because due to volatility and high exposure in trading, traders get a lot of opportunities to earn high potential earnings. Hence, trading is a good career and this becomes possible because in this, you get to trade with full flexibility whether you are sitting at home or in the office or you can trade from any location.
3. Is trading a risky job?
Yes, trading is a very risky job because many traders end up with unnecessary losses because they do not have proper knowledge, strategy and setup. If you want to be profitable in trading, then you need to have a solid understanding of the market, strategy and patience.
4. How much do day traders make?
Many experienced day traders earn around 10 lakhs to 50 lakhs in a single day because they have no lack of experience and along with that, they have skills, proper strategies and good knowledge about the market conditions.
Day trading is very risky because in this, you have to buy and sell only on the same day, due to which many traders, especially beginners, make unnecessary losses due to lack of experience. This is an instrument that requires continuous learning, discipline and strategy and you should have the ability to effectively manage your risk.
5. Who is India’s number one trader?
Rakesh Jhunjhunwala is India’s number one trader.
Fantastic topic for trading.