How to Earn 1 Lakh Per Day from Share Market: Strategies, Risks, and Realistic Approaches

How to Earn 1 Lakh Per Day from Share Market

Discover actionable strategies on how to earn 1 lakh per day from the share market. Learn about day trading, swing trading, risk management, and tools to maximize profits.

The idea of How to Earn 1 Lakh Per Day from Share Market is thrilling but highly challenging. While stories of traders making fortunes overnight exist, consistent success requires skill, discipline, and risk management. This guide explores actionable strategies, tools, and examples to help you understand How to Earn 1 Lakh Per Day from Share Market realistically—without falling for get-rich-quick schemes.

Understanding the Basics: Types of Trading

3. Strategies to Earn ₹1 Lakh Per Day

A. Scalping

• How It Works: Execute 50–100 trades daily, profiting from tiny price movements (₹0.5–₹2 per share).
• Example: Buy 10,000 shares of Reliance at ₹2,500 and sell at ₹2,501. Profit = ₹10,000. Repeat 10x daily to reach ₹1 lakh.
• Tools Needed: Low-latency trading platform, Level 3 data.

B. Day Trading

• Focus: High-volatility stocks (e.g., small-caps, news-driven stocks).
• Example: Trade 5,000 shares of Tata Motors daily. A ₹20 price swing = ₹1 lakh profit.

C. Futures & Options (F&O)

• Leverage: Use derivatives to amplify gains.
• Example: Buy Nifty call options worth ₹2 lakh. A 5% intraday move = ₹10,000 profit. Scale positions to hit ₹1 lakh.

4. Risk Management: Protecting Your Capital

• Rule 1: Never risk more than 2% of capital on a single trade.
• Rule 2: Use stop-loss orders religiously.
• Rule 3: Diversify across sectors and strategies.

5. Essential Tools and Platforms

6. Example Trades: Real-World Scenarios

Example 1: Day Trading Infosys

• Capital: ₹5 lakh
• Strategy: Buy 500 shares at ₹1,500. Sell at ₹1,520 (1.3% gain).
• Profit: ₹10,000 per trade. Repeat 10x daily = ₹1 lakh.

Example 2: Options Trading

• Capital: ₹3 lakh
• Action: Buy Bank Nifty call option at ₹100. Sell at ₹150 (50% gain).
• Profit: ₹50 per lot x 20 lots = ₹1 lakh.

7. Common Mistakes to Avoid

• Overtrading to recover losses.
• Ignoring market trends.
• Lack of a predefined exit strategy.

Understanding Market Dynamics: Bull vs. Bear Markets

Example: In a bull market, traders focus on growth stocks like Tata Technologies. In a bear phase, shorting overvalued stocks or buying put options works better.

Essential Pre-Trading Foundations

A. Building Capital

• Start with at least ₹5 lakh for active day trading (ideal for scaling returns).
• Use compounding: Reinforce profits to grow capital organically.

B. Technical vs. Fundamental Analysis

C. Psychological Discipline

• Avoid greed and fear-driven decisions.
• Maintain a trading journal to track emotions and outcomes.

Advanced Trading Strategies

A. Scalping

• Tactic: Profit from 0.1–0.5% price movements using large volumes.
• Example:
  • Capital: ₹10 lakh
  • Trade: 20,000 shares of SBI at ₹600. Sell at ₹602 (0.33% gain).
  • Profit: ₹40,000 per trade. Execute 3x daily to hit ₹1.2 lakh.

B. Intraday Momentum Trading

• Spotting Momentum: Use volume spikes and breakout patterns.
• Example:
  • Stock: IRCTC breaks resistance at ₹1,000 with 2x average volume.
  • Buy 1,000 shares at ₹1,005. Sell at ₹1,030 (2.5% gain).
  • Profit: ₹25,000. Repeat 4x daily.

C. Options Strategies

• Straddle Strategy: Buy call + put options before major events (e.g., RBI policy).
  • Example: Invest ₹50,000 each in Nifty 20,000 Call and Put.
  • Post-announcement, one option surges 50%: Profit = ₹50,000.

Risk Management Frameworks

Tools & Technology for High-Frequency Trading

Case Studies: Real-World Examples

Case 1: Scalping in Nifty Futures

• Trader Profile: 5 years of experience, ₹15 lakh capital.
• Action: 50 Nifty futures contracts scalped for 10-point gains daily.
• Profit: 50 contracts x 10 points x ₹50 = ₹25,000 per trade. 4 trades = ₹1 lakh.

Case 2: News-Based Trading

• Event: RBI hikes interest rates by 50 bps.
• Action: Short PSU bank stocks (e.g., PNB) pre-announcement.
• Profit: ₹2 lakh from a 5% drop in PNB shares.

Common Pitfalls & Solutions

Daily Routine of a Successful Trader

1. 6:00 AM: Review global markets (Dow Jones, SGX Nifty).
2. 8:00 AM: Scan news (Economic Times, Moneycontrol).
3. 9:15 AM–3:30 PM: Execute trades, monitor positions.
4. 4:00 PM: Analyze trades, update journal.

Taxes, Legalities, and Compliance

• Short-Term Capital Gains (STCG): 15% on equity trades.
• Audit Requirements: Mandatory if turnover exceeds ₹2 crore.
• Documentation: Maintain logs of all trades for ITR filing.

FAQs

Q1. Can I earn ₹1 lakh daily without experience?
No. Start with paper trading, learn technical analysis, and gradually scale.

Q2. What’s the minimum capital required?
At least ₹2–5 lakh for day trading; ₹5+ lakh for scalping.

Q3. How much time does it take daily?
6–8 hours for active trading.

Q4. Are there tax implications?
Yes. Short-term gains are taxed at 15%.

Q5. Which stocks are best for high returns?
High-liquidity stocks like Reliance, HDFC Bank, or Nifty F&O.

Conclusion

While earning ₹1 lakh per day from the share market is possible, it demands expertise, discipline, and a well-structured plan. Focus on mastering one strategy, manage risks diligently, and avoid emotional decisions. Remember, even seasoned traders face losses—consistency is key!

Ready to start? Open a demat account, practice with virtual funds, and gradually transition to live trading. 📊

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