Why Share Market is not for Daily Income but Only for Passive Income ?

share market investment

Why Share Market is not for Daily Income but Only for Passive Income ?

Share Market is an option for all those unemployed who want an additional income source or want a source of income that could be governed from the comfort of home . In India , in some places share market trading is an option to earn for full time investing in options and futures it is one of the most risky business in share market .

For all those who are beginners who want to earn from share market and are ready to sacrifice some time in market for earning some passive income , then in this article we shall be discussing about making passive income from Indian Share market .

Share Market Ideal Working for a Beginner 

share market investment

Share market is not a place where you can make a 7 to 8% percent in a single day where if compared with a bank fixed deposit where you get only 6% return in India , stock market is a great option to earn somewhere 0.5 to 1% return on a single day . For beginners , who want to make daily income investing only Rs 15000 or 25000 capital in option or futures or stock intraday trading it is a risky business where you can also loose a great part of your capital .

As a beginner , you can start by buying the shares on delivery or holding basis and not trading on intraday basis . By investing for about minimum 2 to 3 month , you will certainly receive result of 5 to 6% return on your stock and it is for sure . It totally depends on how you choose a stock and your risk appetite.

Do not go for intraday trading in shares or even in options of stocks or Index options .

Beginner Investment in Share Market 

With as low as Rs 1000 you can practise trading , investing or swing trading in share market . Trading is done in the way where you buy shares on a single day and sell them on the same day . Here you can expect a return capture of 1 to 2% where at most you can receive a return of 20% where after the stock hits upper circuit or lower circuit.

For a beginner , to become a master trader to start making money on passive view basis should buy a share by investing minimum Rs 1000 in a demat account . Buy single share and check how does it move and provides you return.

Once you learn for buy and sell of shares, then you can invest more money and can leave the share for upsurge or to make some profits .

Can you make Daily Income in Share Market ?

There is no chance , that as a beginner you earn money in share market . While for a beginner it is important to track movement of Nifty 50 , Bank Nifty and Gift Nifty in Indian stock market and then start investing in a particular stock checking its movement .

It is important to know that you can start making money in a share when you invest and leave it on delivery stock . In Intraday , you can never make profits or keep it with you because you will find difficulty in saving such profit.

But when you target for a swing in the market then you can invest in a stock for a term and generate wealth by receiving a return in a week ., month , quarter or 2 or 3 years.

As a Beginner should you bear risk of Futures and Options Trading in Indian Share Market ?

No , trading in futures and options is a direct no never get influenced by any person or market trader to invest your money share market for options and futures . Rather , if you want to earn daily basis you can direct invest in equity and can even take the stock on delivery .

Option and future trading is a pure gamble and since the inception of market it was observed that 90% of the traders in option and trader market looses money and pays to the 10% gainers in the market which is not in the retail segment .

As a beginner , you should own stocks and let it grow even it takes years to grow.

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Can you earn passive Income in Share market ?

Yes , share market is an alternative to buying property , buying gold or investing in fixed deposit . In stock market you can earn passive income by investing partly in few shares or by using the division method . If you hold Rs 1 lakh and invest in share market then you shall earn a maximum return of 6% on your investment .

While if you invest your money in some stocks of some company then you can definitely earn 10 to 15% return on your investment .

To start earning passive income in stock market with Rs 1 lakh , you should invest Rs 25000 equally in 4 top shares of stock market where you will not end up paying more brokerage and your risk will be divided among 4 different stocks.

What should be ideal percentage of return from Share Market in India ?

If you are investing for a short duration or expecting a maximum return more than fixed deposit then by investing in share market you can expect a return of 10% or 12% from the stock after which you can exit the stock .

It is the history of share market that if you choose mostly nifty 50 stocks , then you surely receive a 12% return in net 6 months compared to fixed deposit.

Share Market Analysis Best Broker in India 

For investing and earning in passive ways in share market, it is essential that you know which is the most trusted broker in India and with the help of which broker you can invest in share market for long term where your stock will be safe and secure.

Groww and Zerodha are two of the most popular share market brokers in India which owns the best interface for trading , analyzing and investing in stock market.

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Conclusion 

So , now it clear to you that you should not be in a hurry in trading or earning from share market but you can earn on passive income of 10 to 12% return in share market by investing in different shares but you should understand that you should only divide your money in 4 different stocks and not more than that. Do not diversify your stock much so that you do not end up paying more brokerage.

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