can i earn my living from trading and investing in stocks ?

Question

i want to earn Rs. 10,000 p.m from stock market. I have a computer, internet and online trading a/c with my broker.
can i earn enough from stocks.how much money sould i invest
where i can find reaily worthful and needful
advice. I am a retire person plz help me

Answer 1

AS an investor i the stock market there are two answers to this question. Yes you can earn a great deal of money in the market,IF YOU KNOW , what you are doing. A great deal of time needs to be spent on reading behind the scenes on the market. To make money don't go with the flow of people who buy stock Z as it is going to make a pile. Read books by Benjamin Graham, Bill Gates,and Oracle of Omaha warren Buffet, before investing real money. Do simulated stock buying with a set amount of say Monopoly money and keep close and accurate records of how much money you would have made or lost for a period of a month before using real money.
The other answer is that you can lose your shirt if you do not have an idea of the risk potential that you can afford. Get information on a stock before you jump into the market. Google the information, subscribe to a financial newsletter, if your broker is giving you poor information fire him and get another one.
As a retired person figure out what is the level of risk management (i.e. what is the most you could afford to lose on a trade) and work out whether you are a conservative investor or one who will throw caution to the winds. And be very honest to yourself about how much you can afford to lose. Having made some boneheaded decisions myself I have lost over $10,000 in the market, but I am still there for the next 10 years until I retire. Pick some blue chip stocks at first if you are not sure, that have good dividends.

Answer 2

I presume, you are a retire person having investment in Bank/Post office deposits, from where you get fixed income. You have online trading account with your broker. Sensex is going up, so you thought of adding some more income in your pocket.

But be aware, it is not that easy, to take correct judgement of selecting a particular script (stock), if you are new to this area. Firstly, this is not the time to enter in the market but the time to book whatever possible profit you can by selling your investment in shares, if you have. Because the market is hots up. Before a year sensex was deep, Now it is sky rocketing. There is no point of investing now. First you study the market at least for a year if you are new. It is never late.
The one who is investor and having idle funds say about Rs.5,00,000/- can wait and step in, if there is a correction of about 2500 point. Otherwise study the market first.

Answer 3

Study, and I mean STUDY all the information on this site very carefully:

http://stocks.about.com/od/understandingstocks/f/stockfaqrisk.htm

Use extreme caution before you undertake gambling your money. If you're asking about online trading here, you're not ready to invest, and if you cannot afford to lose money, do not invest it! Stock goes down in value as often as it may rise. You must be prepared to take a loss, at least for the next several years.

Answer 4

Sure you can earn a living by trading and investing in stocks. There is no limit to the extent of money you can earn provided you are able to pick the right stocks.
Chances are that you win some and you loose some, thats how it works even for the most seasoned professional.
Here is a link which should help you to some extent.
http://www.rediff.com/getahead/2007/jul/23stocks.htm

Answer 5

If you are well-educated, smart, and do lots of research, you can proably make at least 15% a year on your investment. That's assuming there is no bear market. You can still make money in a bear market, but you better be extra smart and savvy.

In the USA, you could probably make a living trading and investing if you have about $500,000 to start with.

Answer 6

Invest half of your saving in Stocks & see if you are able to live on it or not.

Do not take too much risk by investing all in stocks.

Answer 7

I'm also retired and trading on-line. It's a great challenge, but it can be rewarding on several levels.

There's basically three type of trading (actually there's more... but I'm keeping this basic).

Day Trading - Exactly what the name implies. All positions are exited by closing.

Swing Trading - A day to several weeks. Usually marked in days.

Position Trading - Long term goals - long term holds.

Most important: Don't just jump in. It'll be a costly mistake.

For Day Trading and Swing Trading you'll need to learn Technical Analysis.

Most likely your current broker is not the one you want to Day or Swing trade with.

Read several books on technical trading. Understand it.

You must read some books on the psychology of trading. You can make money by winning 50% of your trades with the proper money management and psychology. You can lose money with 70% wins not using the right money management and psychology.

One book I'd like to suggest;
The Disiplined Trader by Mark Douglas

Good luck!

Answer 8

You need about $5000 to start but it takes years to increase to enough to live on .
If you have about $250,000 , you could make enough on % , dividends and trades to live on .

How much do you have with your broker ?
And if you have $$$$ there , they should have a market investing education materials .
Or use yahoo finance .
The investing education link is under the investing tab .

good luck

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Answer 9

yes u earn but u should invest there 500 000 rs minimum there to earn without risk.this market for richest n investers only.pls dont think about earn 10000 rs without invest 500000rs.otherwise u can loose ur money too but goodluck.very good market for u if u have above facilities

Answer 10

you can earn 10k per month but you need to have atleast 2 lakhs to start with. apply for good ipos or invest in good stocks and if market conditions are good, you can make that money.

the best way however is to invest for long term in stocks and look for other sources of income.

thanks,
srikanth
http://indianstockmarketscomment.blogspot.com