This question comes up with an unmatched regularity.
Let us have a look at these pictures. These people are also traders. They earn their livelihood from trading.
And they do not ask such questions.
This guy sells peanuts –
A very low end snack. In North India, it sells mostly during winter season. In summers this person would be selling something else.
A Flower Vendor –
What do you think this man does?
He is a trader. He buys and then sells flowers. That is his source of earning.
The Vegetables Shop –
A very familiar sight.
This is a perfect trading examples. Here the portfolio is diversified in various vegetables (stocks in case of stock market trader). Did you ever see a small vegetables vendor shutting down?
It is rare because these guys know how to ply their trade.
Money can be made from trading :
The reason for quoting three examples of the same kind is that we forget that trading is simple.
The only requisite for making money from trading is:
Sell at a price higher than buying price.
Learn the skills required to trade.
Know your market.
Try something more complicated and you will be chasing a mirage and ultimately end up blaming the markets.
We find that small vendors ( traders ) never shut shop but the big stores with Management Graduates looking after their supply chain management go under with great regularity.
To earn a living from stock market learn the essentials of trading.
Practice the risk management with perfection.
Do not use a sledgehammer to drive a nail.
(do not get too bogged down with research)
Keep it simple.
It can be done.
If these guys could earn their livelihood why anyone else can not ?
We do not have to shout to attract customers. We do not have to worry about what bargain a customer would ask for.
This was posted initially at quora.com – https://www.quora.com/Is-it-really-possible-to-earn-a-living-just-by-trading-in-Indian-market/answer/Pramod-Kumar-983