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Reviewed by Ibnujala
Have you tried earning a significant daily profit, say ₹5000, from the stock market? Have you thought about how to earn 5000 rupees per day from the stock market? Is it really possible?
Although it might seem challenging, earning ₹5000 a day through the stock market is possible, but not guaranteed or assured. By building a practical daily income strategy, utilising technical and fundamental analysis tools, developing strong risk management, and more, traders can try to earn ₹5000 daily in the stock market.
However, will long-term trading methods help achieve this goal? According to our analysis, it’s the short-term trading methods like intraday trading, swing trading, scalping, momentum trading, and others that benefit the most in earning ₹5000 a day through the stock market.
In this blog, let us have a detailed discussion on the strategies and plans that help both novice traders and seasoned traders earn significant profits daily from the stock market.
You might have doubts regarding whether it is possible to earn ₹5000 daily from the stock market. Yes. Trading can earn you ₹5000 a day, but it’s neither easy nor certain.
The most popular and fastest way to attain this goal is intraday trading. But even though this method may offer short-term results, it possesses high risks. In addition to intraday trading, other strategies that may be taken into consideration include swing trading, options trading, scalping, and momentum trading.
However, this ₹5000 daily return can be largely affected by factors like trading capital, risk management, market conditions, sudden market corrections, skills, and discipline. Moreover, it is not a guaranteed source of income or an assurance that you will earn ₹5000 every day.
Same-day trading, or intraday trading, is a short-term trading strategy that has the potential to yield quick profits. It is, as the name implies, the same-day purchase and sale of stocks. So, this approach helps develop a daily income strategy from the stock market.
Moreover, with the right use of real-time monitoring and technical analysis tools, like RSI, moving averages, or Bollinger Bands, and the ability to follow risk management strategies, intraday trading helps navigate trading opportunities in rising and falling markets. Apart from them, chart patterns like triangles, rectangular consolidations, or flat top breakouts also provide strong trading signals.
However, as some of you might know, intraday trading has more risks compared to long-term trading. So, following the 3-5-7 rule will be beneficial for traders. But what exactly is the 3-5-7 rule?
The 3-5-7 rule, also known as the Three Trade Rule, is a simple principle that helps strategise trades more effectively, reducing potential risks. According to this rule, the traders are asked not to risk more than 3% of their trading capital on a single trade, limit the overall exposure of the capital of all open trades to 5%, and ensure that the profit of their winning trades is at least 7% more than their losing trades.
Although not a standardised rule, this is a common practice followed by several traders to reduce risks and losses in intraday trading. However, it is not an official rule approved by SEBI or other organisations.
Along with the 3-5-7 rule, combining strategies like momentum trading, breakout trading, and utilising risk management facilities, with the help of trusted trading brokers like Upstox, Angel One, Zerodha, 5paisa, and others, will help improve trading, maintain discipline, and develop portfolio diversification.
As we have discussed so far, intraday trading used appropriately can help earn ₹5000 per day. However, several techniques and features used in this trading, such as leverage, also include high risks. So, traders must trade responsibly with proper research, market analysis, and expert advice.
Now that you have had a quick overview of intraday trading, let us have a look at some procedures that help you teach how to earn 5000 rupees per day with the stock market. Some of these important steps are as follows:
First things first, learning the basics of intraday trading is essential before entering the market. Various resources like books, webinars, online courses from platforms like FinQuo Versity, expert advice, and more can be utilised for learning intraday trading and improving your financial knowledge in general.
No matter what you use, ensure that they are reliable and recognised by authorities. Once these basics are learnt, intraday trading will be easier for all traders, including beginners, novice traders, and seasoned traders.
Defining your trading goals and developing realistic goals that you can maintain is necessary. As the current target we are speaking of is ₹5,000 a day, set your strategies and plans accordingly.
As trading brokers have an important role in the trades, selecting safe and reliable trading brokers can greatly influence your intraday trading. You can find various popular brokers like Upstox, Zerodha, and more. However, ensure that these brokers are identified by SEBI or other similar organisations before choosing them.
Furthermore, verify the spreads, transaction costs, terms and conditions, and other rules while choosing your trading partner. Moreover, ensure that they provide real-time price updates, alerts, a user-friendly interface, and responsive customer support.
Additionally, always check the margin requirements with your broker, since these vary by stock, segment, and SEBI regulations.
Every successful trader begins with a well-defined strategy. Using technical indicators like the Relative Strength Index (RSI) to track momentum, MACD to confirm trend reversals, and Bollinger Bands to measure volatility, you can develop result-oriented strategies and offer significant results.
Many traders also combine these tools with price action trading to focus on support and resistance levels, candlestick patterns, and volume trends to improve accuracy.
Remember, money is important for all. Therefore, it’s crucial to backtest your strategy using previous data or a demo account before risking real money. This allows you to refine your approach, reduce mistakes, and build confidence.
Pre-market analysis that includes tracking global market trends, overnight movement analysis in different markets such as futures, options, and more, analysing earnings reports, and sector analysis updates helps build a strong base in intraday trading.
In this way, traders will be able to shortlist some highly performing stocks based on volatility, offering better returns in the short run. Moreover, it will also help approach the trade with more confidence.
Even though most traders plan effective strategies and stay informed about the market changes, execution is where they fail. Execution is just as crucial as planning and strategy.
Ensure that you follow your strategies and trade with discipline. It is important that you do not fall for your emotions and end up in revenge trading and emotional trading. Make informed decisions and seek advice from experts if needed.
Risk management features and facilities are the backbone that help every trader mitigate potential losses. Following them and utilising some golden rules, like the 3-5-7 rule, will be beneficial, as they will help keep major risks at bay.
Additionally, portfolio diversification is also a key factor that helps reduce risk. According to this method, you invest in diverse stocks. You can therefore balance the returns from other stocks even if one of them declines.
However, portfolio diversification will be more beneficial for long-term investments due to the power of compounding. When it comes to short-term trades, portfolio diversification can make them more complex and increase the transaction costs. So, this should be considered and taken care of under expert guidance.
The stock market is highly volatile and subject to change every other day. So, not updating yourself on the market trends and practices will seriously affect your trades and returns.
So, always ensure that you refine your strategy, strengthen your weaknesses, and enlighten your financial knowledge continuously through constant monitoring and analysis of your past trades.
Let’s analyse how to earn ₹5000 per day with the stock market and intraday trading:
Assume that you have ₹2,00,000 capital and your selected stock is Tata Motors.
Assume that at 9:30 am, upon opening the market, you purchased 100 quantities for ₹1,000 each.
Assume that at 10:00 am, the share price of Tata Motors rose to ₹1,010.
Sold 100 quantities of Tata Motors shares at ₹1,010 per share = ₹1,01,000
At 10:30 am, suppose Tata Motors’ share price fell back to ₹1,000.
Bought 100 quantities for ₹1,000 each.
At 2:00 pm, suppose Tata Motors’ share price fell back to ₹1,015.
Bought 100 quantities each at ₹1,015 per share
At 3:00 pm, the share price rose to ₹1,035.
Sold 100 shares at ₹1,035 per share = 1,03,500
Total profit of the day = ₹5,000
In this example, you can easily understand how to generate ₹5,000 in a day in the stock market by taking long positions. Similarly, you can take several short-selling positions while intraday trading in a falling market to generate profits.
Profit is highly dependent on the margin used. There is a favourable correlation between the margin and both profits and risks.
The price variation of stock can vary from various factors, including economic conditions, geopolitical tensions, market sentiments, news updates, overbought and oversold situations, and many others. Being attentive to these aspects may help take advantage of the price fluctuations.
Moreover, the above profit example does not include transaction costs, brokerage, STT, GST, stamp duty, and SEBI charges, which can lead to a considerable reduction in the overall profits.
Apart from intraday trading, some other alternatives can be used to make 5000 rupees every day in the stock market. Some of them include:
While intraday trading is the buying and selling of stocks within a day, swing trading is holding the purchased stocks for a few days or weeks. Compared to intraday trading, swing trading does not require the traders to continuously analyse the market, making it less stressful.
Swing traders can often look at company financial statements, management quality, and growth potential to identify fundamentally strong stocks.
Traders can benefit from swing trading if executed using technical analysis tools and risk management strategies. However, the returns from swing trading are not as immediate as intraday trading.
Remember, swing trading doesn’t provide a fixed daily income, but over time, returns could average out to similar levels depending on capital and success rate.
Options trading is another method that helps earn income, mainly through derivative contracts such as put options and call options. Derivatives involve notional investment values far greater than the margin paid, which magnifies both profits and losses.
An in-depth knowledge of margin requirements, market sentiments, and lot sizes will help traders make significant returns from options trading.
However, along with them, a trader should also be skilled in both technical analysis and fundamental analysis to excel and make as much as ₹5000 per day with options trading.
Remember, options trading carries even higher risks than equity trading. Most beginners lose money in options, so it should only be attempted after gaining experience and proper training.
Scalping is a highly active trading style where multiple trades are executed. Usually, these trades are carried out within seconds or minutes based on the slight fluctuations in liquid shares.
It is ideal for traders who thrive on speed, quick decision-making, and fast order execution through reliable trading apps like Zerodha or Upstox.
Although each trade may yield small profits, the sheer volume of trades in a day can add up to significant income. Scalping requires laser focus, an emotion-free trading mindset, and strong control over transaction costs like brokerage fees.
However, for most retail traders in India, scalping is not practical because of transaction costs and execution speed limitations. It is usually viable only for institutional or professional traders.
As we have already discussed, intraday trading comes with higher risks compared to long-term trading. So, it is important that you follow certain strategies and things while involved in intraday trading. Some of them are:
High-liquidity stocks are those that have high demand in the market. So, investing in these stocks will make trading easier, as traders can find buyers and sellers anytime.
Technical indicators are important in trading, as they help understand and evaluate the market trends, momentum, price changes, and more. So, learning the key technical indicators such as the relative strength index, Moving Average Convergence Divergence (MACD), moving averages, and others will help you better plan and execute your trade.
Trading with the trend is crucial to earn ₹5000 per day from the stock market. In short-term trading, moving against the trend often results in major losses. So, analyse the market and move according to it.
Develop a proper strategy that includes risk management features like stop-loss orders, risk-reward ratios, and more, as they help mitigate potential losses more effectively.
Continuous learning is essential in trading in the stock market. Moreover, consistency is also essential as it helps improve daily returns through intraday trading and other short-term trading options.
However, ensure that you maintain emotion-free trading, as emotional decisions can cause huge losses in the stock market.
When aiming to earn ₹5,000 per day through intraday trading, many beginners rush in with excitement but overlook the basics. In this fast-paced style of trading, even small errors can quickly add up to big losses. Understanding the most common mistakes traders make is crucial, as avoiding them can be just as important as finding the right strategy.
As we conclude this article, is your doubt on how to earn ₹5000 per day with the stock market clear? Even though earning ₹5,000 per day from the stock market is possible, it requires more planning and analysis than just luck.
With discipline, risk management, continuous learning, expert advice, and more, traders can achieve their goal of earning ₹5000 a day. Regardless of the trading method you choose, such as intraday trading, swing trading, options, or long-term investing, it is important that you follow a structured approach, manage your emotions, and adjust your strategies as the markets change.
By creating a solid trading plan, utilising risk management facilities, choosing identified brokers, conducting pre-market analysis, and reviewing your performance regularly, you can achieve your financial goals more easily. Remember, in trading, consistency matters more than quick wins. So, stay patient and informed and keep learning about the market without fail.
However, intraday trading and other short-term trading have high risks and might lead to huge losses. So, financial decisions should be taken after proper research, guidance, and expert advice.
Remember, while short-term methods aim at daily income, long-term holding is more about stability and compounding wealth.
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
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Ibnujala is a seasoned financial expert of Indian and Middle Eastern markets with an experience of over 15 years. His deep interest in neuroscience fuels his research in seamlessly blending finance and science. With a bachelor’s degree in law from India and an MBA from the UK, his diverse academic background makes him an expert in financial management and mentorship. In addition to being a seasoned investor and serial entrepreneur, he currently serves as the CEO of Finquo Versity.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages incurred from following the information provided in this blog.
Uma Nair
