Imagine sitting by the beach with goggles on…. sipping some Pina Colada and earning at the same time.
If you ever get a chance to live a life like this, would you opt for it? It’s an obvious YES!
But this scenario sounds a lot like a dream. Is this even possible?
The answer is Yes.
Almost half a million people in India practice intraday trading for a living. This means you don’t have to answer to your boss, no deadlines, nothing. You will be your own boss. It’s just you and your trading terminal.
I’m sure this is what you are looking for. So, let’s get started and understand how you can turn this dream into reality.
Intraday Trading for a Living
You might have heard about people who have made fortunes just by trading in stock market.
Trust me, day trading is easier and more rewarding than a 9 to 5 corporate job.
In fact, we recently interviewed Mr Rajendra Paliwal, a day trader who started with just Rs 10,000 in 2008. Today, he has accumulated a corpus of Rs 4 Crores. And he made his entire fortune by day trading.
In the interview, Mr. Paliwal also talks about trading psychology and has shared many insights for new traders along with how he grew his trading capital.
To get valuable insights on intraday trading for a living watch the video below.
Wondering, how you too can trade for a living?
Let’s break it down. Before you start trading you need to analyse these two things –
- Expected profit you desire to earn in a month. (A realistic amount)
- The number of trading sessions you get per month.
Accordingly, you will have to find out how much profit you must make per trading session to make a living.
For example, excluding Saturdays, Sundays and public holidays you would probably have around 18 to 20 opportunistic days in a month. Simply divide the amount with the trading days available. There you go! You have successfully cleared the first step.
Another resource you will need is a trading terminal and an internet connection. Getting access to a trading terminal is very easy these days. All you need to do is open a Demat account with Samco Securities and get access to it for free.
Recommended reading: How Samco Offers India’s Best Demat Account?
Once you have opened a Demat account, the next step is to trade. But traders often don’t understand what to trade?
Seeking advices from the electronic media or a relative who is associated with the stock market is not a good idea.
This is a very common practice where beginners buy a stock by mere recommendations assuming it to rise. They hold onto the stock even if it is a loss making transaction with the hope of a trend reversal.
You need to accept the fact that the stock market does not reward traders who let their emotions control their actions. Instead, it rewards those traders who trade with a solid research and strategy.
When you let your emotions control your actions, you tend to make more mistakes and eventually end up in losses.
Day trading for a living involves a lot of patience and research. If you are aligned with the right mind set and strategies, you will be able to eliminate mistakes and make huge profits.
Recommended reading: Trading Psychology – How your mind matters in making money?
Let’s Look at a Few Pros and Cons of Intraday Trading for a Living
Pros of trading for a living
- Flexible hours
If you trade for a living, then you are free to set your own working hours. Moreover, you don’t have to seek approval from your boss for a 4-week holiday. You have the freedom to do whatever you want.
- Zero overhead cost
No need to buy expensive train tickets or refill Rs 103-litre petrol or iron your clothes every morning to get to work. You can simply trade from your home without all these hassles. All you need is some capital to get started.
- Chances of Abnormal Gains
Intraday trading is unique in its own way. If you get the trades right, you can make abnormal profits as well. This is much better than a job which provides fixed salary and some incentives.
- Not dependent on anyone else for your performance
In a job you are supposed to work along with a team to achieve a particular goal. So, you are dependent on others for your success. But, in case of intraday trading, your success is not dependent on someone else’s efforts. It is the outcome of your dedication and expert research.
- Limited overnight risk
As you are day trading, you square off the position by 3:30 pm. Which means you don’t have to worry about what will happen the next day. So, there is low to no overnight risk.
- Solitary lifestyle
Throughout the day you will have to work alone. You won’t have any colleagues to share good news or discuss how tiring the day was. But intraday trading for a living has its unique benefits. To avoid a solitary lifestyle, you can easily find some friends who also trade intraday for a living. By doing so you will be able to explore new trading strategies with them.
- Inconsistent and uncertain income
In intraday trading, your profits are not consistent. You might make Rs 70,000 one day. While on some days you might end up with a loss. So your income keeps varying. This could lead to lot of stress. We recommend keeping at least six months’ worth of bank balance at your disposal to cover household expenses. This will reduce some pressure of earning on a daily basis.
- No promotions
You might learn a lot about different intraday trading strategies and tactics over a period. Yes, your skills will improve but you won’t get a promotion like you get in a corporate job. But, the skills you learn is an added benefit which will help you earn more.
Here are a few things you should keep in mind before taking up intraday trading for a living.
5 Intraday Trading Tactics for Successful Trading
- Plan your entry and exit points
Before initiating you must plan your trade well. New traders often exit a stock prematurely for minimal gains. This can make you miss out on huge profit potential.
However, it is also important to know which is the right time to exit. Don’t hold on to a losing trade with fear of loss or a winning trade with greed.
- Strictly follow a stop loss
Bracket order allows you to place a trade with a target price and a stop loss. Whereas, a cover order allows you to place a trade with a stop loss.
- Trend is your friend
Understanding the trend is the most important aspect for a trader to make money in the markets. Any error in judgement can lead to losses. Moreover, it is easy to identify these trends based on the historical performance of a stock. But it is difficult to determine the trend in real-time. Hence, using trend analysis is very important.
Learn the basics of how to draw a trend line from the video below.
You can also refer to the candle formation of the stock while trading intraday. It will give you a fair view of the trend of the stock.
Explore a detailed playlist on candlestick below.
- Profit is the outcome of proper research
For intraday trading, market research is a must. Trade only when you are convinced with the idea. There is no alternative to research. If you do not have expertise of research in intraday trading…then seek guidance from someone you trust.
You can take a look at the expertly curated ideas provided by KyaTrade. It will handhold you throughout your trading journey and tell you when to enter and exit a trade.
Here are a few case studies of how KyaTrade has helped traders make a living.
- Choose the right stocks
There are more than 4,000 listed stocks in the stock market. Out of these, most stocks are not ideal for intraday trading as they have low liquidity.
Intraday trading should be done in liquid stocks only as they can be bought and sold easily.
Beginners in the stock markets often get stuck in the carousel of wrong stocks. Because of this they end up losing capital and eventually quit trading.
You must be thinking why did I call it unique? What’s so special about it?
That’s because it not only provides you with actionable ideas but also tells you when and how much to trade. No one has probably created anything like this before in India.
Here are some unique features of KyaTrade:
- KyaTrade is expertly made with a Giga Trading Engine which analyses over 20 million data points daily to come up with stock recommendations.
- KyaTrade specifies how much quantity of stocks you should buy for a particular transaction so that you don’t add up risk in your portfolio.
- KyaTrade suggests quantities in a way that ensures you don’t lose more than 1-2% of your invested capital in case the stop loss is hit.
- KyaTrade only recommends stocks that have a risk to reward ratio of 1:2 or higher.
KyaTrade is the simplest way of making money in the market. We are honestly tired of investors losing their capital. Hence, we are offering this revolutionary platform for the first month for just Re. 1
Yes, you heard it right. It’s time to experience the power of KyaTrade yourself.