Can we earn regular or monthly Income from the Stock Market

Best way becoming successful stock market trader

Can we earn profit from the stock market on monthly basis? This question is becoming very common in these days. Every trader and investor wants to earn good amount of money from the stock market in short period of time or some time as a regular source of income. Is it possible? 

Some facts that does not support stock market as a regular income:

Regular Income:

The regular income is that which helps you to live your life smoothly and which meet the daily expenses requirements of your life. Many people try to manage regular income by joining the jobs or by starting any sort of business in which at the end of the month we calculate our saving after all expenses. But If we are expecting regular income from the stock market then it requires high skills.  Also it requires the amount of investment which is not possible for everyone.

For example: If a person does a job and his/her monthly income is 50,000 rs. After meeting all monthly expenses requirements sometimes he/she will left with some savings then if gives some amount of relaxation to his/her mind but If a persona have no regular source of income & he/she invested 50,000 rs from his/her previous savings then who knows that the invested amount will come back to his/her account or not? the reason behind it is that stock market is always uncertain. Sometimes you may earn good profit but sometime you make loss on your investment or trading.

Time frame: 

 If a person needs a money which he/she invested into the stock market then you never know on same day what will be the total value of your portfolio In the stock market there is always stock prices fluctuations which is the nature of the stock market. You can not time the market.

For example: 

Any person invested 1,00000 rs into the stock market on the month of July 2021 and he is pretty much sure that his/her portfolio may give 30 to 40 % returns in a month & he/she will be able to pay school fee or may be able to bear grocery expenses for next month but suddenly bad news came into the market & he/she could not book the profit at right time or his/her portfolio was already in negative value then what that person will do in this situation ? simple answer is that whether he/she will book loss and take exist from the market or use another amount of his/her saving to meet the expenses which is ultimately is loss for him

Lack of knowledge:

Many people came into the market for becoming rich & they think that they will beat everyone i this market but at the end they take exit from the market in big loss. In some cases w have heard from many friends that few people lost their regular jobs because they could concentrate on job due to trading habit in the stock market. It is very wrong way to do trading in the stock market. Stock market give very good opportunity for earning profit side by side but how we take that opportunity it depends on person to person.

For Example:  A (Name) of  person was working with XYZ ltd company as manager.The one friend of A (name) Person suggested him to start trading into the stock market side by side because he had  earned huge money from this market side by side. 

Now A ( Name) Person follow his friend advice and start trading or short term investment. In the begning He earned good profit under the guidance of his friend. Now A ( Name) Person decided to increase the trading amount or investment amount in the stock market & his focused now only on the stock market or on his portfolio because he invested good amount of money. Due to lack of concentration & after few warning by his company head, That person lost his job. What if he will not earn in coming days from the stock market ? who can give 100% surety of his investment ? How he will meet his general expenses ?

 In this case always be careful, Never lose your job concentration. First learn about the stock market then come into it. Never lose your regular income.

Some Important Tips if you want to become full time traders in the stock market for regular income: 

Learn the Stock market:

If you want to become a full time stock trader then first learn the stock market tools like technical or fundamental analysis. Stock market requires professional approach. If you want to follow the technical then try to join some professional courses and learn about the technical charts. Also learn about the fundamentals like how to pick right company for investment and what factors need to analysis before making investment

Professional Approach:

As discussed earlier, The stock market requires professional approach. The approach is not only limited to technical s and fundamental analysis it also includes the Fund management, ROE, Full focus on the trading screen during trading hours.

Bank Balance or Savings:

If you want to become full time investors then you should have knowledge about your bank balance which may decide your future requirements. Always invest right amount of money into the stock market even if you become full time trader.

Try to Lock profit:

A professional trader is that who book the profit at right time & minimise the loss by following the stop loss. If you have become the full time trader but never follow this approach then one day you may face difficulty into the stock market. 

Go for SIP:

There are many companies into the stock market those are offering SIP or Systematic investment plans but it is advisable to stock or chose good plan or well reputed companies plans for safe returns. Because Safe investment is also required. 

In nutshell, We can say that becoming a full time trader or investor is not a bad approach but it requires a professional skills, knowledge, and experience. Never come into the stock market without knowledge. Never approach the stock market by leaving your full time job. Stock market is a good business if you take it in right way. Full time regular source of income is always good way for meeting your daily basis expenses requirement. You can not take out the money from the stock market instantly. 

Read above topic and take your own decision. I shared my own view on the this topic.

Also Read: Why Financial management is very important