10 Simple Steps To Grow Your Small Capital By Stock Market Trading
This is not day trading This is short term delivery trading .
Here you will learn how you can grow your little money from begin (whatever amount is) grdually by follwing proper way.
This means: From 1000 to 5000 and 5000 to 10000 and so on.....
Stock market is for every one and everybody can make money and this is true. Here are a process and tips if you want to increase your initial small investing amount then follow this. you will definitely complete your targets without losing your money.
Consider You Have 1000 Rs To Start Investing : here we are taking a example and this is real practical based example so that you can easily understand the concepts and follow it to make money because everyone start with little amount and that is right.
• Study Charges
This is not less amount so dont think about it .if you invest it properly then you can definitely make more from this amount and grow your money. so try to invest that appropriately. for this you need to see and study first what is your brokerage and other charges like (CGST and SGST, Stampduty) while buying company stock
and consider them before do delivery trading . another thing is brokerage and this is different for different broking companies so you should calculate it and consider it before investing.
Calculate taxes:
This is rough calculation
- Amount :1000 rs.
- Brokerage: 0.50%(buy+sell)
- Other charges: 5-8rs
- Depository charges :25rs
- Total: 10 + 10 +25 = 45 (Take Round figure = 50rs)
So here, your one trading session all the charges are 50 rs then you need to Gain atleast profit of 60 rs then and then only you will earn actual profit of 10 rs. whatever profit will be but only after 50 rs.
So you need to earn at least 50rs other wise you will have loss and that will cut from your investing amount.
Note : Your all brokerage and charges must be always cut from your profit not from your invested amount .
• Buy Less Price Stock
Every persons income is different so investing amount is also different
based on this here you have 1000 rs to invest and all charges are 50rs so you can only buy shares of 950 rs.
So look for small and medium scale companies which have less price like between 50-100 or 100 - 200 or may be less or more which you find more better.
Try to buy companies between 50 to 200 rs so you will get more quantity like 9 or more. you can buy good company share also but in that case only one or two you can buy or may cant single one beacause per share price is high of these companies and many investors cant afford but then also there are many other good compnies available in market find them and put your money in them.
Example :If you buy this company shares then they can raise and give you profit but you need to wait for that period and also think about it how much price of a company share raise in that period they also have limitation and you also and you cant wait for too long. so the pont is you should think it from begin and take action as per your target.
• Decide Time Period
Now decide how many days you will hold shares like 5 days or 15 days or one month.
Sometime you can't get the results in defined time or may be you are in loss so don't worry this is normal. here just wait for some days and observe trade direction if you see positive sings of price gain then hold it till your profit margin price and if not then exit with affordable loss.
• Study And Buy Good Companies
If you want to make every trade successful
and earn some rs in every trade then you must
buy good companies and for that you need do
some study.
Find the good companies one by one make a list
of them and then buy one after one. You can
buy same company 2-3 times also but first find
more and more good companies.
• Set Profit Margin
Here we have calculated charges in first point so every time you need to set the minimum 8-10 rs profit margin or may be more than this as per quantity which you got.
Tip: Sometime you will earn more profit in same stock than set profit margin so just look the trade condition and keep on hold your investing.
Every company is not same perform so you can earn good profit in one stock so be alert during tarding and then take exit from that company by making it sure.
Example :
If you get 10 shares then your profit would be 100 as per profit set margin but this is our predicton and analysis but stock price can move further from this and you can earn more profit also. like 150 or 200 rs also.So the conclusion is profit would be 1100 0r 1150 or 1200 rs anything.
• Start With Small Gain
You know that the 50 rs will cut from your profit so here you need to gain 70 to 80 rs profit per trade then you will get 20-30 rs profit and that will your actual profit over your
investing amount.
"Don't think this is small and less profit because every big think always start with small and then slowly it becomes large but not in one day immediatly."
Today you are earning 20 to 50rs per trade but if you have focused and maintain your rhythm then you can earn 300 -500rs per trade in delivery. So just believe in yourself and do it constantly.
even it is looking less (20 - 30 rs) profit but when you done 10 trade successfully then add your all profits and that would be 200 or 300 rs or may be more because this is an example. But here 200 or 300 rs are not less and likewise you can make 5000 rs surely one day by adding small small profits.
• Don't Add Profit
Here consider you will have done your first trade and earn some rs may be 20 or 30 rs. Then don't add this profit to your actual amount which is 1000 rs till that becomes total 1000 rs profit. When your total profit will 1000 rs then add it to you first amount. now invest whole 2000 rs.
Here you made 1000rs from 1000 rs but your target is 5000 rs so
Here are two methods you can follow :
First : Follow the same procedure with 1000 rs amount.
Second: Follow the same procedure with added profit with 2000 rs.
• Why Keep Less Profit Margin
- You can exit in less time.
- Even if you have loss then this will less because your profit margin is proper.
- You can recover loss in next trading.
- You are in safe zone because you are trading in delivery.
- You can make money easily by proper way .
• Think Right And Act
This is your passive income and you are earning by investing and this takes some time so think good and follow it. Don't run back to baseless things and ways because you can lose your money instead of gaining and you cant earn daily because thime is short time period based trading not day or intraday trading which needs more study and analysis and big risk.
- 1000 to 2000
- 2000 to 4000
- 4000 to 7000
- 7000 to 10000 or more
This calculation is right because profit is not fixed every time.
Conclusion
In Investment systematic ness is must and as a short period trader you should follow it and dont break it otherwise you cant grow your amount more and more and achieve the big targets.
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