How to Earning Rs. 200 Daily from Intraday Trading with Rs. 10,000 Capital
Modest earnings such as Rs. 200 per day may not seem like much, but they can add up significantly over time. Intraday trading, particularly on volatile days, can provide substantial returns. On a volatile day, for instance, I was able to earn Rs. 5,890 using a call option on an investment of Rs. 6,600 in Bank Nifty. This example demonstrates that it's possible to make substantial gains with a relatively small capital of Rs. 10,000.
The Power of Volatile Markets
Volatility is the friend of a trader. When the market is volatile, opportunities for high returns become more frequent. As a trader, my experience shows that trading on such days can be highly profitable. What’s more, learning pivot trading, support and resistance, and price action can greatly enhance your ability to navigate these opportunities.
Key Strategies for Daily Trading
Pivot Trading
Pivot trading is a technique that utilizes pivot points to identify potential support and resistance levels. By using these levels, traders can determine where the price is likely to find support or resistance, which is crucial for making informed trading decisions. This method is particularly useful in volatile markets, where price movements can be unpredictable. Understanding pivot points can help traders set entry and exit points effectively.
Support and Resistance
Support and resistance levels are key technical indicators that traders use to determine the trend of the market. Support levels are areas where the price tends to find buying pressure, and resistance levels are areas where the price finds selling pressure. These levels can act as entry and exit points. By identifying these levels, traders can create strategies to capitalize on the movement of the market.
Price Action
Price action is the visual representation of price movements and trading volume on a chart. It reveals the underlying sentiment of the market and can be interpreted to predict future price movements. Traders use various patterns and formations, such as support and resistance, trend lines, and channels, to analyze price action. By understanding price action, traders can determine the overall trend and potential turning points in the market, making it easier to make trading decisions.
Navigating the Psychological Aspect of Trading
While the technical aspects of trading are crucial, the psychological aspect cannot be overlooked. Trading is a psychological game where emotions such as fear, greed, and impatience can significantly impact your trading decisions. It's essential to be prepared for the emotional challenges that come with trading. Trading requires discipline, patience, and the ability to make calculated decisions based on market conditions, not emotions.
Conclusion
With a capital of Rs. 10,000, it's possible to earn Rs. 200 daily from intraday trading, but it requires a combination of technical knowledge and psychological preparedness. Learning pivot trading, support and resistance, and price action can help you make informed decisions. However, keep in mind that trading involves risk, and losses are possible. Always trade with a proper risk management plan and only use money you can afford to lose.