How much money one can make by trading stock?

How Much Money Can be made by trading Stocks ? :

I have advised some people in the past to take up trading in stock market as full time or part time activity.

This should be taken up as a serious business activity and not for passing the idle time.

This activity qualifies as a business for the following reasons:

(a) It generates profit or loss.

(b) You can expand the business by increasing the turnover by trading more quantity. Or you can go for Futures and Options.

(c) Even international markets can be traded.

(d) If you are doing well, even more people can be employed to do the same job under your guidance.

And the best part is:

There is no boss to report to.

There is no client satisfaction to worry about.

The working hours are excellent and weekends are free.

With all these positives , the trading business should be a cake walk.

It is not.

Traders are hindered by their fear and greed.

It is not the market but their own lack of control over the emotions which causes them to lose money in the market.

They become compulsive traders unmindful whether a trade actually exists.

A True Story :

I was talking to one of my colleagues about a work plan.

Me: Rao, it is necessary to have a plan. If it does not work out, no issues. At least we enjoyed making the plan.

Rao : Sir, please elaborate the enjoying part.

Me : Like I am planning to earn Rs. 1.00 Crore from stock trading. I am planning every year and not succeeding. But I am very happy when I am writing down the details about how to achieve this goal. Sometime I may succeed or partly succeed.

Rao : Sir, but I have already succeeded in making Rs. 1.00 Crore.

Me: What ?

We did not talk about work after this. He told me how his investments in Infra Sector resulted in huge profit. His net investment was about Rs. 16 Lakhs and currently it was valued at Rs. 120 Lakhs.

This was in year 2010.

By 2013, his portfolio was back to where it had started.

It was around Rs. 16 lakhs again.

Prices kept on falling and he did nothing.

Had no exit plans.

Markets and stocks do not always keep going up.

Markets correct and stocks go down. Good stocks come back, poor stocks stay down and go further down.

One has to be careful.

Some of the things to avoid/follow are already explained here:

Pramod Kumar's answer to What are the common mistakes made by a first time investor in stock markets?

Pramod Kumar's answer to How do people lose money in the stock market? If I bought stocks today, and after some days the value of stocks go low, then I can wait for some more time me until stocks go up. What is the thing that make people lose money ?

and

Pramod Kumar's answer to What are few tips for trading in Indian stock market? What are the trading secrets?

How Much Money Can be Made ? :

There is no limit.

Mr. Rao of this story made more than Rs. 1.00 Crore in little more than one year.

It is another matter that he gave all of it back.

Staying profitable and avoiding loss is important for any trader whether new or experienced.

Your aim should be loss prevention.

Profits will come. Any profit is a good profit.

I hope this answers the question.

Thanks for reading.

19 Replies to “How much money one can make by trading stock?”

  1. Well the answer depends on the following factors ~

    1. Your capital size.
    2. Your risk propensity.Higher risk= higher return but opposite is also possible.
    3. Your knowledge about technicals.
    4. External factors like news and big events.
    5. You money management skills including how you set targets and set stop losses.

    Since, you have raised question specifically related to trading, here are a few snapshots of today’s trades. Anyways I see since I started this trend of posting trade logs & snapshots for last 1.5 yearson quora, a lot of people have started following the trend. But,some of them have been directly using it to provide contact numbers of some xyz advisories. I recommend novice traders to be careful while picking those goodie goodie stuffs as markets also give losses. Yes ,I too make losses on a few days and I don’t mind admitting that.

    Anyways back to today’s snapshots –

    I believe people would realise that’s a decent amount right?

    But, now enough of goodie goodie things, lets understand a few dark realities about trading. Here are 10 reasons why I wouldn’t suggest an inexperienced novice trader to jump into the trading business. By inexperienced I don’t mean the amount of time spent in the markets as I gave seen people who have spent close to a decade in the markets still don’t know how it functions. Experience comes from disciplined approach, life long learning and checking practical application of trade setups. So, now 10 reasons why you need to be carefull while trading and trade only if that’s your full time profession and you can devote that much time to it.

    1. 95% traders burn out cash and eventually stop trading.
    2. Trading is tougher than investing.
    3. Trading can’t be done part time.You need to monitor.You need to spend full time.
    4. Trading is done with leverage. If it can give you 10 times return, it can take away 20 times from you too.
    5. Humans find it difficult to control emotions and take wrong decisions. It happens with you? Sorry, you need to control it or stop trading.
    6. It is addictive. I have seen people loosing crores yet trading for the adrenaline rush it gives.
    7. It is straining to eyes. Yes sitting glued to system can do that.
    8. Any volatility caused due to market news or big events can fail technical setups.
    9. It is meant for only those who are hardcore techincal analysts. In longer run these are the 5% who make gains consistently.
    10. Most people in India pick up professions in job sector or business which demand time. As a result you can’t focus more on trading which means lost focus. It may result in massive losses for open positions.

    So, now the question is who should then be trading to make the kind of money shown in the snapshots.

    1. Those who want to make trading their profession.
    2. Those who can spend 5–7 hours daily to study trades and do trading.
    3. Those who are ready to devote substantial time in learning trading.

    Conclusion – Yes, there are close to a 1000 traders like us who make living and good gains but in a crowd of billions, 1000s is a meagrely enticing ratio. Reason why there are just handful is because of the 10 points mentioned at the start of the answer. I would love to see more genuine traders in the country.

    For more such informative stuffs,don’t forget to follow my recently launched youtube channel ‘ Abhishek Kar’s Academy’.

    Abhishek Kar

    AK Trade Guru

  2. You said that you don't know anything about trading. So it is better for you to start following markets. Study the market before starting the actual trading.
    I will be giving answer in two parts:

    1.How much money one can make by trading stock :

    a)Your investment volume: Profit is directly proportional to how much you are willing to invest.

    b)momentum in stock: Understand the momentum in stock. Sometimes stocks do not behave according to performance of the company. Do not get carried away. More the momentum in stock, more the profit in short term.

    c)selection of stock: Choose right stocks. This is the most important factor. You may suffer significant loss if you choose off beam stock.

    d)investment in various sectors: Do not invest in particular sector. Organize your investment such that even in thorny condition you can survive.

    You can earn good profit if you stick to right instinct.

    2. What are the steps to start as a successful trader :

    a) Believe in what you believe: Do not believe in so called 'news' regarding particular stock. Do not believe in companies numbers without questioning.

    b)Avoid intra-day trades: Short term market is very volatile. You think that you will earn more profit in intra-day trades, but it is other way round. Newbie always suffer losses in intra-day trades.

    c)Start investing in indexes: As a starter, you can start investing in indexes which involve less risk than that of buying a particular stock.

    d) Be quick to book the profit and even quicker to book the loss.

    And just Google for interesting billionaire stories.

  3. Hello Friends,

    Intraday trading is a type of trading in which one can earn good profit and also he can lose huge money. Possibilities of losing money are more as Intraday trading has some limitations. Limitation of complete trade on the same day. One has to be very sure on his trade that if he enters into the trade then atleast have to book some profit by end of the day.

    Intraday trading is very risky to those who do randoms trade or who have a lack of knowledge of stock market. So always keep in mind that trade should be 100% accurate or else you may lose all your capital in a single day.

    In that case, I'm quite luckier as doing 100% sure trade in Intraday trading with the help of a stock advisor name Kayaan sharma.

    Have done many Intraday trades on their Sureshot calls. Even today I have done a successful Intraday trades with help of their sure call. And also you can see in my recent answers have posted some successful Intraday trades.

    Today they advised me to Buy DLF August future 3 lots @192.25 and booked profit @195.25 as per their instructions. So booked profit of Rs.45000 by trading in DLF. And also advised me to buy ORIENTBANK August future 3 lots @144.70 and booked profit @149.30. So booked profit of Rs. 82800 by trading in ORIENTBANK. Total profit I have booked in Intraday trading is Rs.1,27,800

    Have attached my Zerodha account screenshot which shows today's Intraday trade. It is right below:

    So this is my today’s Intraday trade in which I earned insane profits. Highly appreciated This guys work.

    I am been working with him since 3 years and been results been pretty amazing.

    You can get in touch with him.

    Kayaan 9930104457

    Thank you.

  4. How much money ? The figures will just shock you as you are a beginner and you really don’t have any idea about the potential earning of an individual from this Stock market world. Now, let me clear you the most important and the truth about this business is 95% people fails to make any money in this market and that’s because of several reasons like ;

    1. Lack of knowledge
    2. No plan and goals simply trying harder to make money
    3. Indiscipline in Risk management
    4. No proper set-up
    5. Revenge trading

    And many more reasons will come on the way to justify the losses people make in this Stock market. You might be thinking like why I am just telling about the losses, so i have no intentions to discourage you in any way. Just trying to make you understand that there is no limit of earning from this market but you need to be very disciplined, and you must possess the strong mental ability and sound knowledge before getting into this trading world.

    Heading back to your questions am just using some of the my trade account screen shots to make you understand in better way.

    Pepperstone a forex broker ….check the arrows DEPOSIT 50EURO (INR 3800 APPROX)

    Deposited 50EURO On 3rd nov 2016 thursday
    In 3 trading days 3rd nov, 4th nov, 7th nov (5–6 holiday for sat sun)
    see the profit

    PROFIT 45.80 EURO (INR 3400 )

    RETURNS OF 87% CAPITAL INVESTED 50EURO

    This is just one short example how I made 87% returns in just 3 trading sessions and the account was real not demo and user id everything is mentioned clearly in the screenshot.

    You might be thinking like being a professional trader from last 8year How come I am just trading on 50EURO ?
    See I am a trainer also and I used to conduct sessions and teach my students about trading so I practically demonstrate each and every student of mine by making trades personally showing them accuracy and consistency which bring confidence in them and after 3–4 days i handover the accounts to them for doing practice on live market and show me the profits by using the knowledge which i have given .

    So this was the Forex trade and for a beginner I suggest learn first practice hard gain experience and How much money you can make by trading ? You can get the answer by yourself.

    Now just see few of the screenshots from Indian market trades and try to understand the potential how much money one can make here.

    Screenshot of my trading account Profit of approximately 3.81 lakhs in one day.

    Now
    See some of the consistent performance by a beginner trader

    One can make enormous amount of money trading stocks
     Feeling sleepy now if required will edit the answer later it’s now 3:17 am Good night !!

  5. It purely depend on how much one cna invest in trading

    If you can invest 1 crore then yearly you can roughly make 20 lacs

    If you invest 1 lac then you can make 10 thousand to 20 thousand

    If someone can invest good money then it will be easy to average or plan any good strategy and make changes

    But when the capital is less that goes tough to do as if you want to hedge any stock either when you hold in cash or future options need high premium that can be done only when one have a good capital of 10 lacs and above.

    there are many scenarios to describe but in simple everything depend on one trading skill and investments.

    At Zerodha ,

    • Equity & Mutual fund Investment – Zero Brokerage
    • F&O and Commodity Trading – flat Rs 20 per order.

    Click here to open account in 2mins: OPEN ONLINE ACCOUNT

  6. Hello .

    Depends on the market situations .

    My firm gets minimum upto 30% annual returns .

    Last year because of modi boom ,

    We managed to get upto 75% annual returns for our firm and for our clients as well .

    Thats the the power of knowledge and modern technology 🙂

    Thankyou .

    Ps – if you are intrested in trades

    Give me a shot 1 time 🙂

    Watsapp – 9589156841

    Email – sshekharsingh@gmail.com

  7. Trading means buying and selling share for short term. sometimes for minutes to few months.

    Before you should know the cost that you have to pay for trading

    Brokerage – Generally it is a percentage the price of the share. it is about 0.05 for day trading and 0.5 for delivery .Be very carefully on this . This can be negotiated with the bank/financial giving you the DEMAT account.

    This can be big hit on money that you make while trading as the price of the share varies by few Rupees. over a short run.

    Securities transaction tax-0.125 on the transaction value.

    The example given below explains the same

    EXAMPLE:

    Now let’s assume that you purchased 10 ICICI bank’s share at Rs 868.00 through NSE. Assuming that the brokerage charged is .05% for intra day and .50% for delivery, the total cost of the share (for delivery) would be calculated as follows:

    Basic brokerage:

    Rs 8680 x .50% = Rs 43.4

    Security transaction charge = 868 x 10 x 0.125% =Rs 11

    Transaction charge = Rs 0.32

    SEBI turnover charges = NIL

    Stamp duty = Rs 0.87

    Service tax = 4.47

    Total cost of 10 shares @ 868 = Rs 8740.06

    Thus if calculate the difference. You see a Rs.6 per share is inherent cost. thus you will make money only after that. Also note some of the factors are variable.

    Once you have understood these cost you have do a at least six months of virtual trading (pretend you bought some shares) and see if you are making money.

    The best advised is do not do trading. Invest which will give you more returns over a period of time.

    Trading is purely gambling/ speculating. For investment SIP in mutual fund is also good.

    See the average return from shares or mutual fund at the best is 10 to 12. if you are very lucky. well sky is the limit but if you are..

    Average return that most of the people make is 8 to 9 %. So why take so much risk.

  8. There is a few methods to make money buying and selling stocks. the first aspect that you have understanding about Intraday tips provider in India. Now sharing a few methods to make cash buying and selling stocks has its own experience, approach and steps. So right here we start some methods.

    The point of technical analysis & study is that certain market conditions generate certain price in commodities, stocks and currencies, due to the fact proportion market situations repeat themselves so do particular amount structure, consequently a technical trader learns to expect the marketplace in the very short time period via paying near interest to technical sign.

    If you are going to make money intraday trading with zoidresearch you want to be in location when the share market opens and live at your exchange ways until it closes. But, this does not imply that you may exchange all of the time. The old announcing that in case you change well then you cannot lose money on a trade is appropriate for day buying and selling.

  9. I started investing in stock market in 2011. I trade in NSE ( national stock exchange) and BSE ( Bombay stock exchange). I invested 6,15,000 INR when I started and now I have 41,96,000. I made this money through trading, intraday.

    The scripts which I started with were-
    1) ITC
    2)HUL ( Hindustan Unilever)
    3)Monsant0
    4)Merck
    5)Castrol

    There are many more scripts which I used to do intraday in but these were the main scripts. I had kept 2 accounts. One for trading and one for investment. The money I used to earn through intraday, trading in stocks I used to buy shares of that and keep it in my investment account hence creating my portfolio. I am still trading in stocks and making my portfolio stronger.

  10. According to my understanding, as it is a source of income, treat it with the same courtesy and patience as a real job. A person does not start earning millions a soon as he/she takes up a job. At first, the pay is less but with time, experience and diligence the income increases and so does the skill.

    The same goes for stock trading. At first, a person grasps the basics of trading, even suffers some losses but with time, gets the hang of it. After some profits,even if they are small, confidence and patience builds up. Now that some knowledge about trading and stocks has been gathered, a person is capable of earning significant amount of money.

    Don’t expect profits immediately. Just as we don’t start with annual salary in millions right off the bat, the same holds true for trading.

  11. Read up on Warren Buffett, one of the world's richest men. He's made tens of billions of dollars by investing in stocks.

    I particularly recommend his annual investor letters – they're full of very useful advice:

    • Shareholder Letters
  12. First i would like to start to advice you with picking up some reading materials to get to know the basics of investing: The Intelligent Investor, Security Analysis and The Essays Of Warren Buffett: Lessons For Corporate America. Those three books are the books where you can find more information on investing, making money with stocks, how to value stocks and how to invest like a value investor.

    Then I would like to ask you a question, What kind of risk are you willing to take to get your expected return? Because you can decide to put your money in a savings account, and you still can make money also this is relative very safe but inflation will kill your returns. Compared with buying undervalued shares and keeping them for a long period of time can get you an average return of 7 % annually. But here you have to take into consideration the potential risk of losing your principal capital for example by financial crisisses. So the choice is yours to make and you have to decide which risk-reward ratio you want or are comfortable with and start invest the excess money you have to support the economy 😉

  13. This depends entirely on how much you invest and what you invest in. The stock market is a large place with transactions amounting to $5 trillion daily. So, tracking your investment is difficult as is finding which way the market is going. Only if you have sound knowledge of trading and the market, you will make profits regularly. To do this, join a trading course at some good coaching institute like Derivative World. Here the teachers are experts in market trading and can teach you the basics and tricks needed to survive and make money on the market. They teach you first how not to lose money.

  14. Well trading in stocks markets isn’t about gambling and earning money. Need a lot of patience and good capital too in order to earn a sufficient amount.

    You can definitely can make around 25–30% of your initial investments.

    As i am trading with one of the adviser you can also join him to start your trading career or to mint up something great out of your investments.

    Kayaan

    9930104457

    Stock ups
    Stock ups
    Stock ups

    You can join this amazing group for all the answer related to Stocks markets.

    Thank you

  15. The return depends on various things such as your capital, your knowledge, your trading style and many more.

    If you are trading then consider 10–20% monthly return, If you are investing then consider 30–40% yearly as a healthy return.

    If you have a proper knowledge and experience in trading then you can expect a decent return monthly around 40–50%, but trading requires a high level of discipline, knowledge and money management.

    Never go for those who claim 100,500 or 1000% yearly return.

  16. Answers to many such questions on Quora and further education on above topic, may be found here:-

    A Master Reference Place for trading and investing in Stocks, Stock Futures and Forex by Vijay Kumar on Market Masters

    Best wishes.

  17. Intra-day trading requires a professional expertise. To trade and make consistent profits in the market, one must be equipped with the necessary knowledge, discipline and experience. Technical analysis is one of the best methods to trade in the intraday or speculative market provided appropriate stop losses are held in place. Some of the technical calls for 15 March 2018 are:

    Buy Tata Global at 281.4 with a target of 286/289 and a stop loss of 276

    Buy Intellect at 182.5 with a target of 186/189 and a stop loss of 179

    For more technical calls, Contact https://www.bpwealth.com/

  18. It completely depends on the stock you buy or sell and the stock market. The stock you buy may either rise or fall when you want to sell. So it is unpredictable.

    There are two types of trading, Intraday trading and Delivery Trading. Intraday trading involves in buying and selling of stock in the same day.

    Delivery trading involves in buying a stock and holding for certain period to sell. Intraday trading has more risk when compared to Delivery trading.

  19. Somewhere between NEGATIVE ONE BILLION and the sky's the limit. There are no real limits except time (your lifetime) on how good/bad you perform. Both HUGE losses and HUGE gains are possible.

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