How Much Money Can You Make Trading Stocks Online | Espresso

How Much Money Can You Make from Trading Stocks?

Every single investor trading in stocks aspires for high returns on their investment, regardless of whether they are a beginner or a long-term expert. Making money in stock trading requires a solid strategy. This strategy must be able to protect your money, and at the same time, make investments that lead to good returns.


Published on 11 January 2022

If you wish to make money on the stock market, you must have a strong understanding of the same, along with a sense of the factors that govern it.

Factors that govern how much you earn from stock trading

Your income potential is determined by different aspects of trading. These include:

  • The market you trade in: Every market has different advantages. Generally, stocks are the most capital-intensive asset class. Trading in another asset class like forex or futures doesn’t require much capital.
  • The amount of money you start with: If you deposit ₹2,500 in your trading account, your income potential will be far lesser than someone who starts with ₹25,000.
  • The time you spend on your trading education:You need about a year or more to develop a solid trading plan that you can implement to earn a consistent day trading income. If you are trading part-time, it will take you much longer to develop real consistency and attain the type of returns that can let you make a living.

Your personality also influences your income potential. Are you a disciplined trader? Do you practice patience while trading? Knowing your behaviour type while deciding on stocks and investing in the same is vital.
Also Read: Guide ton How to Buy Stocks Online

How to make money from the stock market?

Many people ask how much money can you make from stock trading in India. While there is no definite answer to this query, you can increase your earnings from trading by following certain guidelines:

  • Discipline: Spend time developing your systematic approach. It is wise to have patience and invest systematically in shares you feel are promising. The stock market is volatile. Even if you plan things, there will always be risks. Thus, you must only take calculated risks and think of the necessary action against underlying stocks, like hedging. Discipline and patience will allow you to take a look at the larger picture and make decisions based on that.
  • Research: Stock trading isn’t about being lucky. Investors need to put in a lot of hard work. Before you buy stocks, you must start by researching the company. Spend some time knowing about the operations of the company and its future goals. This improves your chances of making a good investment. It isn’t a good idea to invest based on the price of the stock. Being aware of the business and its prospects helps. If you invest in a sector or business you understand, you can expect good returns.
  • Broaden your portfolio: You must build your portfolio by investing in different asset classes. This strategy helps you optimize your returns and minimize risk. How you diversify the investments and the levels depend entirely on you.
  • Set realistic expectations: When you set your expectations, make sure your feet are planted firmly in reality. The returns from equity markets come in sudden bursts. It tests the patience of the investors time and again. It is crucial to understand that no asset class can guarantee large returns continually. Having unrealistic expectations leads to incorrect assumptions, thereby causing grief that results in bad decisions.

Summing up

The amount of money you can make from trading stocks depends on several factors. While the above-mentioned guidelines can help you improve your earnings from trading, the golden rule is to learn the rules and follow them. Most investors read the trading strategies of experts but forget to practice them while trading.


Chandresh Khona
Team Espresso

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