Many investors assume they must have a certain capital amount in order to invest in the stock market. There is no minimum capital requirement for day trading in India.
Stock prices vary depending on the company offering them. Stocks can be purchased at Rs.2 per unit, or Rs.2000/-. The question isn't so much about how much money you can invest to trade in India but how much. As a beginner investor, there are several strategies that you can employ. Let's see what they are.
These three strategies will help you to avoid worrying about how much money it takes to trade in India.
1. 100 less your current age strategy
One of the most popular strategies new investors have to consider is the '100 minus current age' strategy. This strategy works by gradually reducing your risk as you get older. This strategy requires that the amount of stocks in your net worth equal 100 times your age. If you are 25 years old and have Rs. 1000 in savings, this would be an example of how to invest. Your investment amount should equal 100-25 = 75 per cent of your net worth. You should therefore invest Rs.750 from your savings of Rs.1000 to the stock market
2. HTML3_ The X/3 strategy
This strategy is for beginners with low risk appetites. It states that you need to only invest x/3 amount. This is where x represents the amount that you want to invest. If your stock performs well, you can reinvest in the stock and then use the same strategy again. Let's take, for example, Rs. 7,500 Divide the amount into three equal pieces and invest Rs. Each round, 2500. The x/3 is a great way to mitigate risks.
3. The 75% profit strategy
According to the 75 percent profit strategy, if 75 per cent of your stocks are performing well, you can continue investing. If you have 8 shares that are performing well and 6 of them are doing well, then the strategy is working and you can increase your investment. You should note that it is rare for 100% of your stocks to perform well. Volatility is an inevitable side effect of stock exchange investments.
Young investors who have just started to earn may not have the funds to invest in lakhs, or even thousands, of rupees. You may be wondering what the maximum number of shares that you can purchase in India. The simple answer to this question is that you can trade with whatever amount you have available and purchase as many shares or as little as you want.