How to make 500 in the share market:
It seems thrilling to earn 500 rupees in a single day by selling stocks in the stock market and it can be done, but it is not a paycheck. It is based on capital, knowledge, discipline and risk management. You can make money in the share market but also may end up losing when you rush in without planning.
Think of it like learning how to drive, on your first day you would not over-speed without understanding how to use the brakes, gears, and rules. Here is the same principle, first receive the rules, first learn little, and increase gradually.
1. The Objective Knowledge: 500 per Day.
Let us first find out what earning 500 a day actually means, before jumping into strategies.
Monthly Target: 500/day = 10,000/month, assuming that you trade 20 market days each month.
Annual Target: This will amount to 1.2 lakh a year.
You can do this with small capital though, as long as you are uniform in how you do it - although the less capital you have, the greater the percentage returns you will demand.
Example:
In 5000 capital = you require 10 percent a day (very unsafe).
At 50,000 capital - you require 1 percent per day (more realistic).
If it is 0.5% daily (safer) with 100,000 capital.
Capital size is therefore an issue of stability.
2. Share Market Income Methods
The share market has two broad ways of making money:
A. Trading (Short-Term)
Trading is the act or practice of buying and selling stocks over short periods, minutes, hours, days, etc., in order to achieve a profit due to a change in price.
Types of trading:
Intraday Trading- Buy and sell on the same day.
Swing Trading – Hold a few days to weeks.
Options Trading-The trading in stock derivatives to make quick profits.
B. Investing (Long-Term)
In this case, you purchase fundamentally strong stocks and keep them months or years. It still takes patience to achieve 500/day average with dividends and capital growth, but it can be done.
As your question concerns daily income, we will give more attention to the trading strategies.
3. Skills You Need to Make ₹500/Day
You should not depend on luck, you should have skills and a strategy.
Market Basics - Understand how stock prices change, what influences them and how to make orders.
Chart Reading (Technical Analysis) - This is where one learns how to read candlestick charts, support/resistance levels, and indicators such as Moving Averages, RSI, MACD.
Risk Management- Determine the degree of risk that you would like to take (typically 1-2% of your capital).
Patience & Discipline - You cannot overtrade, you must wait until you have setups with high probability.
Psychology - Greed, and fear of Control.
4. Strategies to Earn ₹500 per Day
Some of the strategies that you can adopt are as follows:
A. Intraday Trading
When you choose liquid stocks (such as Reliance, TCS, Infosys, HDFC Bank, ICICI Bank) you can get in and out fast.
Find breakout or breakdown points with 15-minute charts.
Scenario: When the stock rises above the resistance on volume, then you buy and aim to make 3-5 profit per share.
Sell one-hundred shares at a 100-day profit = 500 per day.
Risks: Sometimes even when volatility is high, you can use stop-loss.
B. Swing Trading
Mark uptrend stocks on day-to-day charts.
The table below shows a case of buying a call option at 100, selling at 110, and a quantity of 50 leads to the profit of 500.
Example: You purchase 50 shares of a stock which increase by 0.1 in one week = 50 x 10 = 500 profit.
This does not provide income per day, but when averaged per week, it can achieve your target.
C. Buying of options (Small Capital)
Even such a tiny shift in the index can provide huge percentage returns.
Risks: The option value can be destroyed within a very short time; has to be timely.
D. Passive (Passively) Dividend Investing.
Stock selection: 3-5 stocks are selected which move large volumes on a day to day basis.
Purchase dividend-yielding shares such as ITC, Coal India, PowerGrid.
Though you will not receive 500 a day, the consistent dividend payouts + capital gains can be averaged at that in the long run.
5. Example Plan for ₹500/day
The following is a realistic plan of an individual having 50,000 capital:
Risk per trade: ₹500 max (1% of capital).
Volume of trade: Buy 100 shares at target price of 5/share.
Configuration: breakout/break down patterns.
Stop-loss: = 3/share loss = 300 rupees = 300; it should never exceed 500.
Charts tradingview, Zerodha Kite charts.
You can achieve the target of 500/day with 1 to 2 successful trades.
6. Tools You Need
News: Bloomberg, Economic Times, Moneycontrol.
Not gambling or guessing but finding trades that have high probability, risk management and sticking to a tested plan.
Watchlist: Find specific stocks to track on a daily basis rather than on a random basis.
7. Mistakes to Avoid
Overtrading -Excessive number of trades = excessive brokerage + stress.
No Stop-loss -A single bad transaction is enough to destroy a week of profits.
Blind Tips- Do not listen to arbitrary Telegram/WhatsApp tips.
Emotional Trading - Greed causes you to hold on and fear makes you leave too soon.
Overlooking Costs - Brokerage and taxes have the potential to undermine profits.
8. Risk Management
The major difference between the regular earners and losers is risk management.
Only risk between 1 and 2 percent of your capital per trade.
Do not put all capital in a single stock.
Have some money to spare on opportunities.
9. Building Experience
Small steps first - even 100/day is a success when you are learning.
Gradually scale up:
₹100/day → ₹200/day → ₹500/day → ₹1,000/day.
As you get experience, you get more accurate.
10. Reality Check
That is a small amount, but 500/day is a great place to begin. But remember:
There are losing days--take them.
Consistency > Big Wins.
Look at the process not profits alone.
In Conclusion
You can make 500 a day in the share market when you have capital, skills, discipline and patience. This is not gambling or guessing, but finding trades that have a high probability, risk management and adhering to a proven plan.
Always begin with small trades, continue to read technical analysis and never gamble with money that you cannot afford to lose. The same skills that can put you at ₹500/day today can also put you at ₹5,000/day tomorrow, but you must follow the market and your strategy.
