When it comes to intraday trading, it is a full-time career for many. In this, if you are thinking of how much profit is good for intraday trading, then there is no same answer for all
Because trading is different for everybody and your capital invested and trading style eventually decide how much you will earn in day trade.
Yes, it can but for that, before getting the result it is important to focus more on what we give.
Giving your proper time in learning and practicing trade can make you rich. But what is the definition of being rich?
In simple terms, how much profit is good in intraday trading?
Well! When it comes to money, no amount is enough, isn’t it?
But let’s be real about what return or profit you can expect from trading if you follow all intraday trading rules.
For this, let’s consider an example.
Let’s suppose you choose to trade in stock XYZ trading at ₹800 per share having high liquidity and a volatility of 3-4%. Now the stock is trending upward and so you bought 1000 shares.
The total trading amount would be though, ₹8,00,000.
Let’s say you get a 5x margin for the above trade, hence the capital you invested would be 1,60,000.
Since the stock was bullish and volatile, you booked your profit at ₹825. Calculating the profit:
=₹25 per share
Number of shares= 1000
Total profit= 25*1000
Invested capital= 1,60,000
Profit w.r.t to invested capital = (25000/160000)*100
This is an ideal trade profit. The trader needs to pay brokerage, taxes, and other platform fees to trade in equity intraday which reduces the net profit.
But consistency in trade, making a wise decision based on facts and figures, and controlling your greed help you in making a high profit in intraday trading.
So, you might have learned how to make money from intraday trading. Here it is important to note that we considered an ideal situation of the trade where you entered the market and book profit at the desired value.
However, practical trading is not straightforward and you have to consider learning and gaining knowledge.
You can join intraday trading classes or enroll yourself in courses to get a proper understanding of the stock market and trading setups.
Before investing capital, invest your time in learning Stock Market.
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