How do I earn a regular income from the Indian stock market?
Originally answered at https://www.quora.com/How-do-I-earn-a-regular-income-from-the-Indian-stock-market/answer/Vinoth-Kanna-26
One should focus for regular income from the Indian Stock Market. Yes, it is focus on trading and not on investments.
Dividends on investments can help only in maintaining your accounts.
Trying to make short term investments cannot help you with regular profits for a long period of time. You should also learn to sell short through trading equities or indices.
To Trade successfully you should have a plan.
First priority should be education:
Learn about stock market theoretically through books. Learn about successful investors and traders, and about their investment and trading plans.
Many people think that they can invest or trade on their own and make success. It is not impossible. You will lose lots of time and money before you do so and you will quit before even you think to get educated about it. When we have learn so much in schools through books, think if we can learn everything through experience in life. We would not understand languages, maths, physics without someone who can really explain it to us.
So, never hesitate before you buy some good books and learn. You can also learn through videos, audios, tutorials available in the internet.
You need not read the book completely, you can just glance and be updated. Make sure you learn something new and be capable of implementing the knowledge you gain from the education.
Second should be your trading strategy:
Learn basic strategies and practice with paper trading. Disciplined basic strategies give the same results as advanced trading strategies. If you are trading, try trading the Futures of the stocks or the indices. Do not trade stocks with margin or intra-day. Keep practicing until you are ready to trade Futures.
Third should be learning from Mistakes and re-learning:
Wisdom that matters. The heart to accept losses at times. Wisdom to understand the very basics of trading and learn something with every mistakes that happens and re-learn things. Putting your gained knowledge to work in a wise way is your wisdom.
Dedicate time to learn charts, dedicate your best time for the best work during the day. Keep learning charts. Identify quality trades and place time. Know your exit plan. Have a good trading strategy. Do it only if you can 100% focus.
If you are working, you should trade currencies in the night only if you can dedicate time to focus on it.
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