crop ethnic trader with smartphone and laptop on bench indoors

Hello everyone

So I was asked this question recently:

If we have 1 lakh rupees, then how do we invest in the stock market and how can we earn more money using the stock market?

You have asked two questions here in this one statement.

  1. How do we invest 1 lakh rupees in the stock market?
  2. How can we earn more money using the stock market?

so to answer your first question:

  1. You can invest 1 lakh rupees in several ways:
    1. You can buy nifty ETF (Exchange-Traded Funds) – view is long term
    2. You can do a lumpsum investment on Nifty Index Fund (mutual fund) – view is long term
    3. If you know how to pick stocks, you can invest in stocks and take delivery. – view is short-term to long term
    4. If you understand the dynamics of the stock market (technical analysis), you can do day trading – view is intraday
    5. If you know futures and options trading, you can use different strategies within 1 lakh rupees. – view is intraday to a few days

As you can see, there are different ways to invest your money, but which one to select?

For this, first let us understand the nature of the stock market

many of us think, that making money from the stock market is easy.

we overestimate the profits and underestimate the risk.

We have heard of stories, where people have lost their huge capital in this market, but think anything sort of this will not happen to me.

So before you invest in this market, understand the risk associated with it. And know well, that the stock market will test your patience before giving you rewards.

Therefore, if you are OK with some risk, and based on your view, you can choose any one way among the five ways that I have mentioned above. And beware because if your view is wrong, you will lose money. And as per statistics, 90% of investors lose money.

The next Question is: How can we earn more money using the stock market?

let us take an example

If I have 1 lac rupees and I am able to earn an 18% to 25% return from this market in a year, which is an exceptional return by the way. That’s wonderful.

But if I think that I want to make a 50% return, or I want to double my capital in 1 year, then unconsciously we’ll be taking unnecessary risk, which will only burn my capital.

So the only way to increase your earning is to increase your capital and expect a decent return.

I hope I have answered your question.

If you have any doubts, feel free to comment.

Thank you for reading

PS: Want to learn about the stock market? Click on this LINK now

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