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How to Earn Money in Share Market?

How to Earn Money in Share Market

Working jobs, running errands, starting a business, everything circles around one thing: making money. But have you ever thought that you can earn money from the share market as well? Well, let us answer all your queries and have a look at how to earn money in share market.

Passive sources of income are essential for short-term as well as long-term goals. Wherein a lot of people relied on fixed deposits, real estate, gold, and other investment schemes before; lately, the trend has shifted towards the share market as well.

The earnings associated with the share market often have various myths attached to it, and a lot of people thus refrain from it. However, these myths have reduced over time by knowing how stock market works, and therefore, many more people have grown interested in the stock market.

Let us now begin and have a look at how you can earn money with the stock market.

How to Earn Money In Share Market in India?

Investing money has always been a number one priority for a majority of people in the country, after all, “what you invest today, becomes your future tomorrow”. The stock market which was earlier perceived as a taboo has now flourished into a full industry.

How is it possible to make money in the stock market? Let us understand this statistically. A lot of people invest in fixed deposits in India.  A fixed deposit has the potential to generate a return of 6-8 percent per annum.

Whereas when we talk about the share market, your returns in a year can go as high as 100-300 percent or even more. So, isn’t it a great deal?

Now imagine if a few years back you had two choices, one to purchase a Royal Enfield and the second to buy the shares of Royal Enfield.

Which one would have been beneficial for you? A lot of you might be thinking that investing in a bike would have been beneficial. But let us tell you that there is a slight misconception there.

The value of the Royal Enfield bike would have definitely declined down the lane but if you invested in the shares of the Royal Enfield bike, you would have double the return.

This is why, yes it is possible to generate good money from the stock market, obviously with some rules and strategies attached to it.

Let us look at some of the points that can help you learn how to earn money in the share market with complete ease.

Learn Stock Market

An investment in knowledge pays the best interest.

And after all, anyone who is entering the stock market is looking for good interests. Therefore, there is a need to invest your time in understanding the market before you dive deep into trading.

How can you learn about the stock market?

Read about the various terms and jargon that are used in the stock market. Have a look around the news, videos, articles, and everything that can contribute to you knowing the market a little more.

You should be well aware of certain things which include,

  • Your style of trading- There are different styles of trading that a person follows in the stock market. You should be aware of whether you are an investor or a trader.

So an investor is basically a person who is in the stock market for long-term goals. A trader is one who is looking to make the best out of the market in a shorter span of time.

Knowing which kind of traders you are, not only helps you to understand your goals better but also influences the kind of research and investment zones.

  • Know your goals- You should always know why you are entering the stock market and what are your expectations.

Some people might have short-term goals like buying a phone, while others might be investing to save some capital for their dream house. So defined goals can further help you decide on a lot of things.

  • Knowing your risk appetite- The market is volatile and so it is obvious that there are also chances of risk in the market. It is very important that you are aware of your appetite for risk. This simply means that you should know that if you are investing an amount, let’s say ₹10,000, how much loss can you bear.
  • Knowing your investment options- There are various investment options that one has when he/she is entering the stock market. Some of these include equities, mutual funds, SIPs, etc.

Other than these factors, you should also be aware of the fact that letting your emotions empower you when you are in the market can cause troubles as well.

It is always beneficial that you read, evaluate, and then proceed in the market.

Pick a Good Stock

The stock market is equivalent to choosing the right stock. If you want to minimize your risks and increase the chances of a good return, picking the appropriate stock is essential.  So what is the right stock?

The right stock can help you multiply your capital without causing an opposite battle in most cases. You should choose the stocks of the companies that you can understand and have an idea about.

Always carry out company research for the stocks that you are choosing. Keep an eye on all the updates, financial reports, and any new events that might be happening around that particular company as it is going to affect the prices of your stock as well.

Look for the peers of the company and figure out if it has some competitive advantage. It is always better to do a sector analysis before you pick the stock for yourself.

The choice of stock also depends on your goals and style of trading.

You need to carry out the right research when you are choosing a stock. Let us now have a look at why research is important and how you can do it effectively to make money in the stock market.


If you want to crack the question of how to earn money with the stock market, you have to majorly focus on research. Research is like creating new knowledge, and it does the same in the stock market.

It is always beneficial to conduct proper research before putting your hard-earned money into any stock.

The research is based on a lot of factors, including the type of trader that you are. You can research based on your goals.

If you are investing and planning for long-term goals, then you have to carry out a fundamental analysis of the company. In case you are not looking for long-term investments, then doing a technical analysis can also be enough.

Let us have a look at what is meant by fundamental and technical analysis.

Fundamental Analysis

Fundamental analysis is a perfect tool for investors. If you are also looking to invest your capital in the stock market, it is important that you carry out fundamental research.

Fundamental analysis lets an investor analyze a fair price of a stock or intrinsic value by looking at the historical data combined with various other factors. An investor thus studies all the quantitative and qualitative aspects.

Now the next question is, how to do the fundamental analysis of a company?

  • Make sure that you understand the company and the objectives of the company. If you want to become a successful investor, it is essential that you consider yourself as a part-owner of the company and then think accordingly.
  • Read the financial reports of the company and understand all the profit-loss statements, cash flow statements, etc.
  • Always check the debt of the company.
  • Compare the company to its peers and do a sectoral comparison.

Over the years the fundamentally strong companies like Infosys, TCS, etc have shown good growth in the stock market.

Therefore, appropriate fundamental research can lead to great investment opportunities.

Technical Analysis

Apart from the fundamental analysis, if you are trading and looking for short-term goals, then you can carry out a technical analysis of the stock. Technical analysis can help a trader decide the right entry and exit point as well as in picking the right stocks.

You can use various technical indicators, chart patterns, chart types, to determine the exact price where you want to enter the market.

Technical analysis is more like studying the market movement which in turn gives you an indication of the right entry and exit.

There are various technical indicators that an investor can use based on one’s own preferences. It is always beneficial to use a combination of indicators rather than rely on one.

So when you learn how to earn money in the stock market with technical analysis, you can reap profits for your short-term goals.

Trading Strategies

Whenever we start performing a task, we strategize it beforehand. Similarly, there are various trading strategies in the stock market. Various traders choose one according to their trading styles or risk appetite.

When you want to earn money in the share market, it is essential that you pick a strategy. But what is more important is that you should stick to that strategy for some time.

It is a human tendency to jump to different things if the first is not working. But in the stock market, don’t jump from one strategy to another just because you are not getting the desired results.

This also makes sure that you are following discipline in the market. Discipline can stop you from making impulsive decisions or following the herd mentality.

A lot of people lose their capital in the stock market because of the lack of discipline and a sense of making their decisions.

So, make sure that you have a trading strategy that suits you.


Another way in which you can earn money in the stock market is through dividends. As an investor, you benefit from all the gains on your capital, but apart from that, the company pays dividends to its shareholders as well.

After the company keeps some profits for their own purpose, they distribute the rest according to per share. This means that if the dividend is ₹5 per share and you have 1000 shares of the company, you will get a dividend of ₹5000 in addition to your capital gains.

However, you have to make sure that you are picking the right stock as we discussed earlier as well.

Apart from all the points that we have covered earlier, investors also make money in the share market by applying for IPOs. The primary market or IPOs let an investor take with them the listing gains. This is because if the IPOs is allotted to an investor and on listing the market price increases, it gives subsequent gains.

How to Make Money When Stock Market Goes Down

The idea of making money in the stock market is to buy at a low price and then sell it at a higher price. So, making money when the market is showing a bullish or an uptrend, is pretty obvious.

But what if the market goes south? Can you still make money? The answer to these questions is yes, you can!

But how to earn money when the stock market goes down? The answer to this is short-selling or doing options trading.

Short-selling if explained in simple terms is the selling of the stocks first and then purchasing.

Let us understand this with the help of an example. Suppose there is a company, XYZ and the share of the same has a current market price of ₹150. But you speculate that the market is looking a little bearish. So you sell 100 shares of ₹150 each by borrowing it from the stockbroker.

Later the market price moved down to ₹100/share. So now you purchase the shares, returned them to the broker after making a profit.

So, in this case, your profit will be 15000-10000= ₹5000.

Wondering how you can sell before even purchasing the shares? Actually, your concerned stockbroker does it for you and later when you purchase the shares, you are returning the shares back to the broker.

So, just like that, even when the market is going down, you can make good money.

On the other hand, options trading helps you to make money even when the market is falling down.

Here you can either buy the Call Option at the ITM strike price or simply go for selling a put option at OTM.

Both these strategies can give you a better profit and comparatively a better opportunity to make money during the bearish trend.

Is Share Market Profitable?

How to earn money in share markets is a question that has been there in the mind of a lot of beginners.

The answer to every query is patience and knowledge. With the right strategies, tips, rules, and mindset, one can earn good money in the stock market.

It can not only be a source of passive income but also a great opportunity for active income as well.

So, why not start investing today?


  • Can I earn money from share market?

Yes, you can make money from the stock market by investing in various different segments. Apart from the capital gains, you can also earn money through dividends that the company provides to all its shareholders. Although, there are certain things that one should keep in mind while investing in the stock market.

  • Do proper research
  • Choose your stocks wisely
  • Educate yourself
  • Be disciplined
  • How to make money in stock market without investment?

Although there are no such ways in which you can make money in the stock market without investment.

But there is a way which is known as refer and earn. Using this you can refer the stockbroker to your friends and earn when your friend opens a Demat account with that.

Apart from that, you can start your investments with a minimum ₹1 but there is no other way where you can make money without investment.

  • Can you make money from the bearish market?

Yes, you can make money in the share market, even when the share market is falling down. This can be done either by choosing the option of short selling in intraday or via options trading by using the right strategy. Some people might even start a conversation with you saying – Is Intraday Trading Profitable either?

Well, that’s a topic for some other day, nonetheless.

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