How to Earn Regular Income From stock market

 Short-term trading in the share market is an effective way to generate an income. So, how do you go about it?

First, you must understand what short-term trading entails. It could include intraday trading, where you buy and sell stocks within a single trading day. It could also include trades where the period between buying and selling ranges from a few days to a few weeks.

1. How to make money in stock markets?

Know the kind of a trader you are

There are basically two kinds of traders in stock market; one kind includes those who follow fundamental investing and the second kind are the speculators. The major difference between these two kinds is the way they see the price of the stock. The investors who follow fundamental investing give less importance to the price of the stock when compared to the speculators. Such traders are more concerned about the fundamental strengths of any company. To make good money in stock markets, one should practice the fundamental method of investing.

2. Trade stocks in news

Momentum in either direction is very much essential for stock to provide a significant intra-day return. This is usually fueled by news flows, which has a direct impact on the price of a stock.

News based on earnings reports, orders, upgrades/downgrades by brokerages, product announcements, FDA announcements, economic data releases, geopolitical factors and other macro and micro issues can push stock price significantly, in either direction.

Tracking daily news and comprehending the same will help the traders to pick stocks with momentum and place their trading bets accordingly. Learn the basics of share market tips with Stock Market Made Easy tips by Market Experts

Trading in momentum stocks will increase the probability of making profits, thus adding to their daily income.This is another way one can earn Rs. 500 daily from the stock market

3. Making Money in Stocks: The Buy-and-Hold Strategy

The buy-and-hold investment strategy became popular in the 1990s, underpinned by the "four horsemen of tech"—a quartet of huge technology stocks (Microsoft (MSFT), Intel Corp. (INTC), Cisco Systems (CSCO), and the now-private Dell Computer) fueling the rise in the internet sector and driving the Nasdaq to unprecedented heights. They seemed like such sure things that financial advisors recommended them to clients as companies to buy and hold for life. Unfortunately, many folks following their advice bought late in the bull market cycle, so when the dotcom bubble burst, the prices of these inflated equities collapsed too.

Despite such setbacks, the buy-and-hold strategy bears fruit with less volatile stocks, rewarding investors with impressive annual returns. It remains recommended for individual investors who have the time to let their portfolios grow, as historically the stock market has appreciated over the long term.

4.DIVIDENDS ARE NOT GUARANTEED

Unlike interest income from bonds or FDs, dividend income is not certain. A company is not under any obligation to pay dividends. It is entirely at the discretion of the board of directors of company to declare a dividend.

5.Mutual fund monthly income plan: 

This plan is ideal for beating inflation, provided you are ready to take a moderate amount of risk. the ratio is usally 20% to 30% investment in equity securities and 80 to 70% in debt instruments like certificates of deposit. A good tenor for this plan is between 2 to 3 years and you cn recieve a monthly invome by selecting a dividend payout option. however, the equity componebt makes it difficult to axquire regular dividends because dividends are only pais on profits, not invested capital.

 while each of these invesrment avenues can suit the needs of different investors, there is always a risk-return problem that makes most investors prefer the convenience of investing in fixed deposit. A fixed deposit offers a great balance of low risk and attractive returns as a perferred investment avenue.

 Plan you finanace with care and invest in FD by Bajaj Finance, Where you can grow your savings with the best interest rates, flexible tenors, and assured returns, calculate your returns with the fixed deposit calculator.