Do you Know to Cook Food? then How to Trade in the Stock Market Now!

Do you Know to Cook Food? then How to Trade in the Stock Market Now!

One question is always asked to me where ever I go, what is a simple trick to earn little money regularly in the Indian stock market? In turn how to earn 500Rs a Day in Stock trading.

This is a very thoughtful question, 40% of the people who come to trading are only looking to earn their daily expenses, A little bit of money say 500Rs a day . Let me answer this question in my way based on experience i have in past 10 year.

Have a minimum investment of 50,000Rs. Also, you going to do delivery Equity trades, hence you need a discount brokerage firm account. You can discuss with me to choose the best firm and I will help you with opening procedures also.

Further, you need to first track few companies, let say around 50 to 100Companies and penny stocks to mid-price scripts. Scripts here refer to Company and its last share price.

Now, form your holdings you should divide the funds into 2halfs, 25k each. Use the first half for trading and 2nd half for recovery backup.

How to and where to trade is the next question rite?, here we go..

Split the 25,000Rs to at least 10companies, 2,500Rs to one company, invest in them. If possible you can invest 15companies also. By this we you might have bought 10 or 20 or 50 or even 100Shares also based on the company share price you choosing.

Till now what you have done is level one investment, so it the invested companies any of the one scripts at least give you some 500Rs profit by a week to 15 days time. Remember the buying process to be done during the positive market turning time, we call it as bearish to bullish reversal.

You can keep selling shares whichever turns to your expected profit, keep paying out the money you have earned as profit. Out of 10 companies, you invested at least 4 of them remain non-benefit companies, giving you some loss in them.

So use the 25K of your 2nd half investment and average those 4 companies during the Bearish time. During the bearish time, you may again pick some fresh companies to invest in. Don’t worry at least 1lakh good companies available to play around.

Increase your investment and number of companies you invest by time. Always trade entry to be during Bearish to Bullish and Exit to be Bullish to Bearish. Your entry time is the same time for averaging also.

This style of trading is my own and I have succeeded in this, 15 days to 3 months once we get the opportunity of bearish to bullish cycle change or vice-versa. If put little efforts then definitely you can be one among the expert in this style

India is a land of Inspiration, this method is an inspiration by Indian Recipes we prepare at home. We just call it A Curry, but we might have added 20 to 30 ingredients to it. Altogether it is awesome and each ingredient is of very small quantity but contributes the best together.

Similarly, a smaller volume of shares you buy with the number of companies you invest is the lesser of risk, regular of profit. Of course, it will take time to learn to prepare Indian recipes so here too, it will take to digest and master this logic. However, have a mentor for your initial trials. nothing wrong in it. Hope you earn sufficient.

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3 Comments

  1. Mohan
    March 22, 00:02 Reply

    Thanks for this post.. I never found such a easy to understand post during my time in the internet :)!! Kindly keep on posting more!!!

  2. Brajesh Trivedi
    March 22, 00:02 Reply

    Thank you very much Ravi for writing on similarity between cooking food and trading in stock.
    You explained a simple yet effective way of trading and earning some amount out of it.
    The only challenge a person like me can encounter is–1.How to identify those initial 10-15 stocks to invest ₹2500 in each.2.How to understand the bearish to bullish trend to invest and bullish to bearish trend to exit.Probably it might come as initially following your analysis and thereafter assimilating those style and techniques to oneself.
    I wish I should have developed the same but alas—-

  3. Anil
    March 22, 21:15 Reply

    I will partially agree with your views Raviji. Instead of going for 10 to 15 co.s it will better to choose one or two co. And if the trade goes in our direction it’s good otherwise we can start averaging with the back up money just like we do sip in MF. When it get reversed it may give excellent result as expected.
    Secondly it is more feasible to concentrate on 1 or 2 co. Rather than obeserving 10 to 15 co.

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