How to Earn Money in the Share Market

September 13, 2021 Trading 4 min read
How to Earn Money in the Share Market

Are you new to the share market and unsure about how to go about it? Well, don’t worry! We have got you covered. Read this article to learn how to earn money in the share market.

Here are some quick and easy lessons that beginners can follow on how to earn money in the stock market:

Check before you go

If you are a complete novice it would be a good idea to first learn the nitty-gritty of the stock market. You could start with understanding the stock chart, the trading volumes, the features that you can use including put, stop loss, and after market orders, to name a few. Also, research the companies whose shares you intend to buy, read about their performance, look out for loopholes, and find out about their pending legal obligations. Make an informed choice before investing your hard-earned money.

The first lesson on ‘How to Earn Money in the Stock Market’: Know it before you enter it.

Do not stick to Nifty 50

A common mistake that novice investors make is following the herd mentality and sticking to the apparently “safer” shares. One thing you should know about the equity market is that nothing is set in stone. Even the Nifty 50 shares are prone to decline. Only the top shares that get traded in volume on the NSE count in the Nifty 50, but this does not mean all those 50 firms are quality, value-generating firms that will meet expectations. You have to do your research and pick out companies where you see long-term development and value creation opportunities. 

Penny stocks could be the way

Most people steer clear of penny stocks because their prices are too low and don’t often find much coverage. However, penny stocks have made some millionaires overnight. While we do not recommend you to partake in any illicit or harmful activity, with a little research, you can figure out the right penny stocks that can multiply your money over time. You do not necessarily have to buy stocks that are Rs. 2000 or 4000 per share, you could start with stocks that are currently under-valued or below Rs. 50 or 100. Eventually, as the company grows from a small-cap to a large-cap, your wealth too will grow. But practice utmost caution and do your research before buying anything in the market because you stand an equal chance of winning or losing money. 

Invest humbly

Whether you invest in small-cap shares or large-cap shares, you have to understand that it can all go wrong as well. So, do not consider profits alone, consider the chance that you might end up losing it all. The market is, after all, volatile by nature. Start with investing small amounts and only invest what you can afford to lock for a long period.  

Choose the right brokerage platform

This is important particularly now that there are several online apps from which you can trade. We recommend picking an app that not only provides an easy interface and useful tips on the stock market but also charges the lowest brokerage fees. You can go for Trade Smart, which is a comprehensive app, 100 percent online, and also saves you on the brokerage. 

Never let your emotions guide you especially in the stock market

How to earn profits in the share market

Go by facts.

You can expect chaos when the market changes its phase and starts a reversal trend. It is in these times that you can differentiate between a good investor and a novice. Good investors know that even if the market shows dramatic movements, one has to remain invested, at least in the value companies. That being said, a few investments may need to go. 

So, how do you decide? Go by facts and reports and not your emotions. With years of staying invested in one company, we may start to develop “feelings” towards it, not wanting to desert a sinking ship. However, you have to understand that if you stick with a losing company, you lose your money too. As investors, we have to make practical decisions. 

 Don’t withdraw

Panic selling occurs when there is a dramatic slump in prices. It may even lead to investors bankrupting their portfolios. We say “bankrupt” because investors may end up losing great shares they may never be able to buy again as they were bought at much lower prices. Do not be quick to sell. You should set a target price in your head and stick to it. Equities are known to deliver when an investor stays invested for the long haul.

Compound your investment

Just as we recommend you do not rush into selling, we recommend you do not rush into buying either. If you have decided to invest an amount, divide it into smaller packets of investment sums, and make regular and modest investments. This will ensure you get the benefits of lowered buying prices when the market is low, and you’ll have more shares at a lower cost. 


  1. How to earn money in the share market without investment?

The share market requires some investments to begin with. You can start modestly and scale your way from there. However, you can borrow your broker’s money for margin trading or you can earn profits on shorting.

  1. How to earn in the share market?

You can either opt for trading, which requires you to hold shares for a shorter term, or go for value-investing with future prospects.

  1. How to earn money in the share market daily?

Intraday traders make money by placing buy and sell actions that are executed within the market’s daily working hours.   

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