How to make money from Stock Market?
Make Money Stock Market is a Difficult task but not impossible. With Proper investment plan and good study, anyone is able to make money in stock market. Most important part of Investment or Trading is discipline and how you control your Greed & Fear.Make Money Stock Market.
Kindly consider Below points before Investment or Trading.
1) Short Term Investment:- In this types investor buy or sell shares for small period of time.
2) Long Term Investment:- In this types investor holds share for long times may some times 5 to 6 years.
3) Intraday Trader:- In this types investor buy & share within a same days and book profit & loss. Brokers allowed upto 10 times margin for intraday trading. But some times intraday trading is very risky. Trader can make good profit with small amount with using margin money.Most of The investor select short term & Long term investment plans.Every successful investor suggest short term & long term rather than intraday trading.
Always Divide your investment in 10 parts & always try to invest your money in 10 different sectors.
Always keep Risk:Reward ratio is 1:3.
What is Risk Reward Ratio Make Money Stock Market?
Are you a risk taker? When you’re an individual trader in the stock market, one of the few safety devices you have is the Risk: Reward ratio.Risk Reward ratio means suppose your R:R ratio is 1:3 means you are ready to lose 1 rupees and your target for profit is rupees 3 in that particular trade.
How This Risk: Reward Ratio Helps Me In Investments?
Suppose you have 10 lacs for investment.
|Investment Amount||10 lac’s|
|Sector/company||1 lac’s (Each Sector) / 10000 (per company)|
Suppose you invested 10 lacs in 10 different sectors (1 lacs in each sector ) with R: R ratio of 1:3.If you lose money in 7 sectors and make an only profit in 3 sectors than also you are in profit.
Risk 1 * 7 =-7 & Reward 3*3=9
Risk (-7) + Reward (9) = 2 (Profit).