7 Proven Ways to Mint Money from Stock Trading in 2023 | Birju Acharya

 

Hey there! Are you tired of struggling to make money in the stock market? Are you ready to up your game and become a pro? Well, you’re in luck! In this blog post, we’ll be sharing 7 proven ways for making money with stock trading in India. Whether you’re just starting out or you’re a seasoned pro looking for new ideas, these tips will help you maximize your profits and take your stock trading skills to the next level. So, let’s get started!

First is Intraday Stock Trading

Intraday trading, also known as day trading, is all about buying and selling stocks within the same day. It’s a fast-paced and exciting way to make money in the stock market, but it’s not for the faint of heart. It requires quick reflexes, a sharp mind, and nerves of steel. Oh, and it helps if you have a little bit of luck on your side too.

Now, we know what you might be thinking: “But I’m not a financial wizard! I don’t have the skills or knowledge to succeed at day trading.” Well, don’t worry! With the right tools and strategies, anyone can learn to trade like a pro. Just make sure to do your research, set clear goals, and manage your risk carefully. And remember, a stock market is a volatile place, so don’t put all your eggs in one basket (or all your stocks in one trading account).

So, if you’re ready to take on the fast-paced world of intraday trading in the Indian stock market, go for it! Just don’t blame us if things don’t go as planned. After all, we warned you that it’s not for the faint of heart. But hey, if you’re feeling lucky, go ahead and give it a shot. Who knows, you might just strike it rich!

So the next question that will be hovering in your mind is Where do you learn Intraday Trading?

Intraday trading can be a tricky business, but don’t worry, there are plenty of resources out there to help you learn the ropes. Some options include taking online courses, attending trading workshops or hot YouTube, or finding a mentor in the industry. And if all else fails, you can always try asking your friendly neighborhood stockbroker for some tips LIKE us. Just remember, with intraday trading, it’s all about timing…so don’t dilly-dally!

Second is Future Stock Trading

Hey, there fellow traders! Are you ready to jump into the world of future trading in India? Well, buckle up because it’s going to be a wild ride.

First things first, what exactly is future trading? Simply put, it’s a financial contract where two parties agree to buy or sell a specific asset at a predetermined price and date in the future. It’s a way for traders to hedge their risks and potentially make a profit.

Now, let’s talk about India. The futures trading market in India is booming, with the National Stock Exchange of India being the largest derivatives exchange in the country. But be warned, it’s not for the faint of heart. It’s a highly volatile market and requires a good understanding of market trends and analysis.

But don’t worry, if you’re feeling a little overwhelmed, there are plenty of resources available to help you navigate this exciting (and sometimes scary) world. Just remember to always do your research and never invest more than you can afford to lose.

And if all else fails, just remember the wise words of legendary investor Warren Buffet: “The stock market is a device for transferring money from the impatient to the patient.” Happy trading!

The Third is Option Trading

Options trading is a type of financial derivative where the buyer has the right (but not the obligation) to buy or sell an asset at a predetermined price on or before a certain date. It’s a way for traders to hedge their risks and potentially make a profit.

But be warned, options trading can be a bit complicated. It requires a good understanding of market trends and analysis, as well as the various options and strategies available (e.g., long call, short put, etc.). And let’s not forget about the pesky Greeks (delta, gamma, theta, etc.), which measure the sensitivity of options to various factors such as time, volatility, and price.

But don’t let all this jargon scare you off. With a little bit of education and practice, you too can become a pro at options trading. Just remember to always do your research and never invest more than you can afford to lose.

And if all else fails, just remember the wise words of legendary trader Jesse Livermore: “There is only one side to the stock market, and it is not the bull side or the bear side, but the right side.” Happy trading!

The Fourth is Swing Stock Trading

Swing trading involves taking advantage of short-term price movements in the market, typically lasting from a few days to a few weeks. It’s a way for traders to capitalize on the fluctuations of the market without having to commit to a long-term position.

But don’t let the short-term nature of swing trading fool you, it requires a good understanding of market trends and analysis. It’s important to identify key support and resistance levels and have a solid risk management plan in place.

And let’s not forget about the importance of patience in swing trading. As the saying goes, “Good things come to those who wait.” (Okay, that may not be an actual trading quote, but it still holds true).

So, if you’re ready to take on the market with your swing trading strategies, just remember to always do your research and never invest more than you can afford to lose. And if all else fails, just remember the wise words of legendary trader George Soros: “Markets are constantly in a state of uncertainty and flux, and money is made by discounting the obvious and betting on the unexpected.” Happy trading!

The Fifth is the Option Writing

Option writing, also known as selling options, is a strategy used by investors to generate income or hedge against potential losses. It involves selling a contract, called an option, that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price on or before a specified date.

As the seller of the option, you collect a premium from the buyer upfront, but also take on the risk of potentially having to buy or sell the underlying asset at an unfavorable price. It’s a bit like being a carnival barker, trying to entice people to play a game of chance with you. You get paid regardless of whether they win or lose, but if they win, you might end up having to pay out more than you anticipated.

Option writing can be a lucrative strategy for experienced investors, but it’s not for the faint of heart. As the famous investor Warren Buffet once said, “Options are not a good way to bet on the direction of the stock market or the direction of particular stocks.” So, if you’re thinking about giving option writing a try, make sure you fully understand the risks and have a solid risk management plan in place.

In the words of the legendary trader Jesse Livermore, “It is not the man who is right that makes money, it is the man who is right at the right time.” Timing is key when it comes to option writing, as you’ll need to accurately predict how the underlying asset will perform in order to maximize your profits and minimize your losses.

So, if you’re ready to take on the challenge of option writing, remember to stay cool, calm, and collected and always have an exit strategy in case things don’t go as planned. As wise trader Paul Tudor Jones once said, “The market can remain irrational longer than you can remain solvent.”

The sixth is a hot favorite when stocks are down more than 3% I’m sure you guessed it right – Investing.

Investing in the stock market can be a lucrative way to grow your wealth over time. In India, the stock market is regulated by the Securities and Exchange Board of India (SEBI) and offers a wide range of investment opportunities in various sectors.

To start investing in the stock market, you will need to open a Demat account and a trading account with a registered stockbroker. You can then use your Demat account to buy and sell shares of publicly listed companies listed on the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE).

Before you start investing, it is important to do your research and understand the risks involved. The stock market can be volatile, and it is important to diversify your portfolio to spread risk and maximize returns. It is also a good idea to consult with a financial advisor or professional before making any investment decisions.

Here are a few Quotes to Inspire you on Your Journey as a Stock Market Investor:

“The stock market is filled with individuals who know the price of everything, but the value of nothing.” – Philip Fisher

“The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffet

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” – Warren Buffet

In conclusion, investing in the stock market can be a lucrative way to grow your wealth, but it is important to do your research and understand the risks involved. By being patient and disciplined, you can potentially achieve financial success in the stock market.

The best investment someone can make is in themselves.

I’ll share some advice in this area, Dear Readers. So let’s get to work on making 2023 and many more years to come the years of your highest production.

Here are a Few Tips for Making the Best Version of Yourself:

• Set specific, achievable goals for yourself. As Confucius said, “A journey of a thousand miles begins with a single step.”
• Prioritize your personal growth and development. As Tony Robbins said, “Personal growth is the key to living a life of purpose, passion, and impact.”
• Practice self-care and prioritize your mental and physical health. As Mahatma Gandhi said, “Your body is a temple of the living God. It is the means by which you can achieve your highest potential.”
• Surround yourself with positive, supportive people. As Jim Rohn said, “You are the average of the five people you spend the most time with.”
• Don’t be afraid to seek help or guidance when needed. As Albert Einstein said, “The more I learn, the more I realize how much I don’t know.”

Hope you guys find some fruitful in this blog.

Need a financial planner to Contact Us

𝐓𝐨 𝐊𝐧𝐨𝐰 𝐌𝐨𝐫𝐞 𝐂𝐚𝐥𝐥: +91 98251 26655

Happy Stock Trading and Wish you good luck.

Why Nifty 50 Trading at ATH | Birju Acharya

 

Nifty 50, the benchmark index of the Indian Stock Exchange, has reached an all-time high recently. This is a very important factor for the Indian stock market as it reflects the strong performance of the economy and the confidence of investors. The Nifty Index is made up of 50 of the largest liquid stocks traded on the National Stock Exchange of India. It is regarded as a barometer of the Indian stock market and is used by investors and analysts to monitor the overall health of the economy. The recent high of the Nifty index reflects the strong performance of the Indian economy in recent years. The country’s GDP has grown steadily and the government’s efforts to improve the business environment and attract foreign investment have yielded results.

The all-time high of the Nifty index is also a testament to the confidence of investors in the Indian stock market. Despite some challenges and changes in recent years, the market continues to attract domestic and foreign investment. Overall, the record high of the Nifty index is a positive development for the Indian economy and stock market. It reflects the good performance of the economy and the confidence of investors and is well-prepared for the progress and development of the country in the future.

What is Nifty 50?

The Nifty 50 is an index of the 50 largest and most actively traded stocks on the National Stock Exchange (NSE) of India. It is considered one of the leading benchmarks of the Indian stock market and is designed to reflect the performance of the broader market. The Nifty index is a barometer of the health of the Indian stock market, comprising 50 of the largest and most actively traded stocks on the National Stock Exchange. The index has been on an upward trajectory for the past few years, driven by strong economic growth and positive investor sentiment.

ATH term definition

An all-time high (ATH) is a term used to describe a stock or index that has reached the highest price level it has ever achieved. In the case of the Nifty 50, an all-time high would mean that the index has reached a record high level, surpassing its previous peak.

Some past data of Nifty 50

The Nifty 50 has reached all-time highs several times in its history. The first all-time high for the Nifty 50 was in May 1990, when the index reached a peak of 1,001.95. Since then, the Nifty 50 has reached several other all-time highs, including 1,753.55 in March 2000, 5,409.20 in January 2008, 9,119.20 in March 2015, and 18604.45 in October 2021, and the last one is 18887.60 in 1st December 2022.

Is this Government being a Market Friendly?

Here is the answer

The Nifty’s all-time high is also a testament to the government’s pro-business policies and reforms. In recent years, the government has implemented a number of measures to improve the ease of doing business in the country, such as streamlining regulations and simplifying the tax system. These measures have helped to attract foreign investment and boost economic growth.

In addition to the government’s efforts, the Indian stock market has also been supported by positive global economic conditions. The world economy has been growing at a steady pace, with major economies such as the United States and China posting strong growth numbers. This has led to an increase in global demand for Indian exports, which has in turn helped to drive the growth of the Indian economy.

Is everything good in our Economy?

Despite the Nifty’s all-time high, there are still some challenges that the Indian economy and stock market face. One of the biggest challenges is the high levels of government debt, which has been a drag on the economy. The government has been taking steps to reduce its debt levels, but it will take time to see the full impact of these measures.

Another challenge is the state of the global economy. Although the world economy is currently in a growth phase, there are concerns about the potential impact of trade tensions and rising interest rates on the global economy. If the global economy slows down, it could impact the growth of the Indian economy and the performance of the stock market.

Despite these challenges, the Nifty’s all-time high is a positive sign for the Indian economy and for investors. It is a reflection of the strong growth and positive outlook for the country, and it bodes well for the future of the stock market and the economy as a whole.

Major Factors:

There are several factors that can contribute to the Nifty 50 reaching an all-time high. A strong economy and positive market sentiment can drive demand for stocks, leading to higher prices and higher index levels. In addition, positive corporate earnings and strong fundamentals of the companies included in the Nifty 50 can also contribute to the index reaching new highs.

When the Nifty 50 reaches an all-time high, it can be seen as a positive sign for the Indian economy and stock market. It indicates that investors have confidence in the market and are willing to invest in stocks, which can lead to further growth and development. In addition, an all-time high for the Nifty 50 can also signal that the companies included in the index are performing well and generating strong returns for shareholders.

CAN I INVEST NOW?

However, it is important to note that reaching an all-time high does not guarantee future success. The stock market is subject to various risks and uncertainties, and the Nifty 50 can experience declines even after reaching a record high. Therefore, investors should always conduct thorough research and consider their individual investment goals and risk tolerance before making any decisions.

In conclusion, an all-time high for the Nifty 50 is a significant milestone for the Indian stock market and can be seen as a positive sign for the economy and the companies included in the index. However, it is important for investors to carefully consider the risks and potential downsides before making any investment decisions.

Key Take Aways

The all-time high for the Nifty index is not necessarily a good time to buy or sell stocks. Stock prices are affected by many factors, including the performance of individual companies, economic conditions, and broader market trends. Investors should carefully research and consider all of these factors before making any investment decisions.

The all-time high for the Nifty index can be a useful reference point, but it is not the only factor to consider when making investment decisions. Other factors, such as the overall performance of the Indian economy and the outlook for individual companies, can also have a significant impact on the value of stocks.

It is worth noting that the Nifty index, like all stock market indexes, can fluctuate over time. This means that the all-time high for the Nifty index may not necessarily be a permanent record, and the index may reach new highs in the future.

In summary, the all-time high for the Nifty index is an important milestone that reflects the overall strength of the Indian stock market, but it is not the only factor to consider when making investment decisions. Investors should carefully research and evaluate all relevant factors before making any investment decisions.

If you need a financial advisor for SIP then contact us at

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Rise in Investment Plan in India through SIP | Birju Acharya

Rise in Investments in India through Systematic Investment Plan – as the name proposes is a robotic plan/investment mode. It allows you to spend a fixed amount in a mutual fund of your choice occasionally to grow your financial corpus through the power of compounding.

It is an automatic method of Invest in Mutual Funds. You pledge a SIP and then it goes on for the number of months you want it to go on for. This is based or you can agree to stop a SIP mid-way as well.

How much you should invest?

You are also imaginary to choose upon the per fund scheme per month amount. As per the financial planning rule, it says you can go for 30% of total earnings which you should invest in your financial planning. This means if you are having monthly income of ₹30000 then you can go for ₹9000.  Meaning, if you want to start a SIP in 2 fund schemes – you need to choose how much you want to invest in each of the structures every month/quarter.

How Rising in Investment Plan in India through SIP assist you to create wealth?

In exchange for the currency that has been Invest to mutual funds, it allows a number of units to you.  For example, let’s think that the NAV for a mutual fund is presently ₹20. Now if you capitalize ₹1,000 in that mutual fund, you will be chosen 50 units of the scheme. As the NAV of the mutual fund rises, your savings will also grow accordingly. So, if the next year, the NAV of this fund becomes ₹30, then the 50 units that you had credited for ₹ 1000, would be worth ₹1,500 after the rise. This is the way your investment raises, helping you to make wealth over the long term through SIP.

Tax on SIP savings on Non-Equity Funds

However, if the investor had capitalized through a SIP in a debt or debt-oriented hybrid fund, long-term wealth increases will apply on units that were capitalized for over 36 months and the turnover is taxed at a rate of 20% after indexation profit. For savings below 36 months, the wealth increases are treated as short-term wealth increases and are added to salary and taxed as per the investor’s salary tax slab.

Is it tax-free or not?

The taxation of SIP savings depends on the nature and occupancy of your asset. The tax action of equities differs from that of the dealing of debt. While equity mutual funds are the utmost tax-beneficial ones, debt funds appeal tax on both small and long-term returns.

So no, not all SIPs are tax-free. Still, tax benefits are only appropriate to the savings made in ELSS funds. What are the ELSS funds you inquire about? They are Equity Linked Savings Schemes that are government-approved tax saving systems. The financier can claim tax implications under section 80C of the Income Tax Act, 1961.

Even though not all SIPs are tax abstracted, they are highly tax-efficient, which means this model of capitalizing assists the investor to save more taxes than lumpsum speculation.

Goal Based Investing in India through SIP

• If you can accept a rate of return in India, your SIPs will help you to rise in your investment which you can create in 5-10-15 years!
• If you have a financial goal such as the acquisition of a car or a house or financing your child’s education or marriage, you can discover how much SIP Investment Plan you need to do to realize these financial goals.
• In the early stage of your employed life, it is not easy to plan for wealth-intensive goals with a lumpsum Investment.
• For example – Let’s say someone has newly on-going work at 22 and the confidence to be able to pay the down payment of the house he tactics to buy at 30.
• The down imbursement he will require in 8 years is projected to be ₹25 Lakhs.
• Even if we undertake that his parity lumpsum asset will give him a 12% return over the 8 year period, the person needs to invest ₹10.1 Lakhs today!
• This is particularly difficult for somebody who has just trendy his career.
• On the other hand, an SIP of ₹15,600 will create a quantity of ₹25,000 for the person. This seems way more possible than a lumpsum investment of ₹10.1 Lakhs for a 22-year old!
• SIP through an Investment plan makes goal-based capitalizing easy!

Past Performance

• People who had invested in mutual funds 15 years ago are now gaining big recompenses. Let’s have an expression at some cases.
• Let’s say you started a SIP of ₹3000 per month in 1999. In a 15-year period, you would have consumed a total of about ₹5.4 lakh. At the same time, your asset would be worth almost a gigantic ₹35 lakh!
• Let’s revenue the same SIP quantity in Franklin India Prima Plus. Again, you would have consumed a total of ₹5.4 lakh. Your asset’s worth in 15 years would be nearly ₹31 lakh!
• In India, Investment Through Systematic investment plans or SIPs shields you from much damage. Some of them are short-term risks, short-term instability, expressive and impetuous responses, profligacy, and so on.
• SIP plans are one of the harmless and most convenient ways to capitalize in the equity markets of India through mutual funds. Study more about SIP here. It is no wonder then to see the amount of people choosing to invest using SIP plans rise so much.

Key Takeaways

• SIP is one of the best forms of controlled investment in this critical economy of the Indian Market, which should be done steadily over a period of time.
• An investor may expand their portfolio by preliminary a SIP in two or more funds.
• Investments in certain funds are qualified for assumption from taxable income under the Income Tax Act. One can save tax each year by capitalizing on a SIP.
• For getting compounding assistance, it is significant to hold investments for a protracted period.
• Want to Settle in India with peaceful retirement, Start investing in SIP at an initial stage of life.

Conclusion

When it comes to tax saving in India, a stockholder must stand in mind that not all SIPs are tax-free. However, they can be tax-efficient and the investor should be aware of the tax suggestions on all their savings. Hence, capitalizing in small installment amounts of SIPs will outcome in a bigger quantity in the long run. The returns predictable differ based on the type of scheme you choose for. So, stay attentive to the nature, tenancy, and most definitely the objective of the asset.

Financial Planning Certified Adviser in India | Birju Acharya

Financial Planning is the process to build a specific financial plan to reach your goals, by considering your financial situation. It often digs into multiple areas of finance, like investing, savings, retirement, insurance, taxes, and much more.

Financial planning In Ahmedabad is the process of taking a detailed look at your financial status and creating a particular financial plan to help you achieve your goals.

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079 69695555

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Financial Planning in Ahmedabad

Why do you need a financial plan?

Personal finance becomes the focus when the responsibilities grow. At this point, the financial plan helps to evaluate the overall person’s current income and future earnings. It allows you to manage your money efficiently and make wise financial decisions.

1. Manage cash flow: To manage your income is one of the main aspects of a financial plan. Awareness of your spending is a must. Develop a personal finance plan, if your income is finishing off by the month-end. It helps to track your money including your savings, expenses, and earnings.
2. Helps in managing debts: A good financial plan will help to prioritize your expenses and clear the mountain of debt. If proper financial planning is not done the liabilities to take a loan might turn into debts.
3. Streamline Investments: A person should regularly get benefits from the investment. Sufficient research must be done and a portfolio should be diversified to reduce the risks involved with the investment.
4. Get financial security: Emergency funds can be created with a good financial plan, and you don’t need to worry about receiving funds or getting an immediate loan.

Top Certified Financial Planners in Ahmedabad

We at Birju Acharya believe that investing is about more than just money, so we provide each client with a personalized strategy that is tailored to their specific needs, allowing them to achieve all of their personal and financial objectives in the long run. Financial planning is a systematic strategy for achieving one's life objectives. Financial planning aids in the identification of short and long-term financial objectives, as well as the development of a well-balanced strategy for achieving those objectives.

What is the aspect of financial planning?

Financial planning isn't only for the wealthy: everybody may benefit from laying out a strategy for their financial future. A financial plan can be created on your own or with the help of a financial planner. Thanks to internet services like Robo-advisors, getting help with financial planning is now more affordable and accessible than ever.

What are the Benefits of Having Financial Planning?

Improve your savings

It may be possible to save money without a financial strategy. However, it's probable that this method isn't the most effective. You gain a lot of insight into your income and expenses when you make a financial plan. You can keep track of your spending and cut them intentionally. In the long run, this will help you save more money.

Benefit from a higher standard of living.

Most people feel that they will have to reduce their standard of living in order to pay their monthly bills and EMI repayments. You will not have to sacrifice your lifestyle if you have a solid financial strategy in place. It is possible to meet your goals while maintaining a decent level of living.

Be ready in emergency situations.

Creating an emergency fund is a crucial aspect of financialplanning. In this instance, you must have a reserve equal to at least 6 months of your monthly pay. This way, you won't have to stress about money in the event of a family emergency or a job loss. You might be able to use the emergency fund to help you meet a range of commitments on time.

Attain peace of mind

If you have enough money, you may cover your monthly expenses, invest for your future goals, and spend a little on yourself and your family without fear. Financial planning allows you to efficiently manage your money while also giving you peace of mind. Don't worry if you haven't yet arrived at this point. If you follow the path of financial planning, you will arrive at financial tranquility in no time.

Financial Planning for Life Goals

It really is impossible to overestimate the importance of personal financial planning in India. It's not only about putting more money aside and cutting costs. Financial planning entails a lot more. This includes reaching your long-term objectives, such as:

Wealth Creation

Because the cost of typical products is rising, you'll need to save up enough money if you want to keep or better your current lifestyle in the future. In the future, you could wish to buy a better car or a new home. All of this necessitates money, emphasizing the need for wealth creation. By properly investing your money in the right avenues, you can achieve these objectives. Equity mutual funds might be a solid alternative for long-term goals. These funds may contribute to the accumulation of wealth for the investor over time.

Retirement Planning

It's possible that you'll be retired in 25 or 30 years. however, this does not imply that you should plan for it when you retire. If you want to have a happy and comfortable retirement, you must start putting together your safety net now. Early planning can help you safeguard your financial future in the face of financial uncertainty. Also, if you start early, you can benefit from the force of compounding, which can help you develop a large enough corpus over a 25-30 year period.

Child’s Education

Education has grown unreasonably expensive not only in India but around the world. And the cost of living will continue to rise in the future. This is why you should start planning as soon as your baby is born. Calculate how much money you want to make and start investing in long-term investments that will help you achieve your goal. If you're unsure how to continue, you can seek guidance from a financial advisor.

Saving Tax

You most likely pay a significant amount of tax each year. However, you can now lawfully reduce your tax bill. The Indian Income Tax Act contains a number of measures that allow persons to lower their tax liability. You can determine the best ways to invest your money and lower your taxable income by preparing your taxes ahead of time. Mutual funds are a tax-advantaged way to invest for your long-term goals.

Do you have any questions about our financial planning services? Let’s talk about how we can help you achieve your goals, please feel free to connect with us.