With rising inflation and cost of living, people are looking forward for new income streams apart from their regular employment. People are more willing to make investment for monthly income, rather than parking their money in their banks and savings accounts. They are now understanding the fact that if they put in their money in FDs and bank accounts, they would not even be beating the inflation on the amount in most cases.
This new awareness for making investment for monthly income, translates into the rise of new demat accounts in the country. Unfortunately, with this awareness, majority of people still don’t have a basic understanding of stock markets but are doing blind investment for monthly income. It is important to understand that to build any income source, you need to first have a complete idea of the playground. Unless you have a grasp upon the dynamics, you won’t be able to make any money. Sadly, markets are a place where if you fail, you also lose your money.
Fortunately, in this blog, we will be covering several ways through which you can make investment for monthly income in stock markets.
Trading
One of the best ways to make investment for monthly income from stock markets is trading. If you master trading strategies though Top 5 Online Stock Market Courses in India, you could build an additional income source for yourself. You could use strategies like Demand Supply, Support Resistance, Indicators, Price action and a lot more to earn from trading.
Some of you might even think that to trade, you need to stick to screen till the markets are open. To your surprise, that is not the case. You could trade using the above strategies for a swing or a positional timeframe where you don’t have to put in several hours like in Intraday.
To simplify, intraday refers to buying and selling the stock/instrument the same day. Swing refers to buying and holding the stock/asset for a maximum of two weeks before selling it for profits. Positional trading implies that you buy and hold the stock/asset for more than 2 weeks and less than a year. You can refer to this blog, to learn more about where to learn technical analysis, which is the backbone of trading through which you make investment for monthly income.
Investment
You might be surprised to know that you could make investment for monthly income. Yes, you can do it via dividends. Although the dividends are issued quarterly, but if you have a huge investment, then this quarterly dividend could act as a monthly income for people. To reap such dividends, you must invest huge money into fundamentally sound stocks with a good dividend yield. There are many stocks listed in the Indian markets which have a great dividend yield, but not all of them are worthy of being invested into.
The logic behind this principle is you want to have a good source of income, but you want your invested capital to remain intact. You don’t want to lose your invested sum, just for the sake of an additional income. Thus, you must learn fundamental analysis from the best stock market courses in Delhi. When choosing between a less fundamentally sound stock with high dividend yield and a more fundamentally sound stock with lesser dividend yield, you must always go forward with the latter one.
In these two ways, you could easily make investment for monthly income if you have good knowledge of the stock markets. If you don’t have even the basic knowledge of stock markets, you should start learning by attending stock market free webinar or stock market courses online free with certificate. You must understand that learning aways comes first before earning!
