Right amount to start investing in share market?

right amount to start investment in share market

Share market is a platform where you can start investing with a minimum amount as 100 INR but if you want to earn money in share market you should start investing the right amount. Which can be a minimum amount of 50k to 1lac INR.

Invest with Right Amount
Invest with Right Amount

There are various reason for this:

When you carry an investment of let’s say 20k INR or 10k in our Demat account what share will you buy? What stop loss will you keep? What should be our target? Should you invest in penny stocks as you are having low investment? Ongoing market situation? There are many questions that one has to think and answer before investing in your money?

So lets start,

When you carry an investment of less than 50K you will have to firstly decide your plan of action since your investment is low you cannot buy good return stocks pricing more than 500 INR. The range of share affordable for your Demat is between 1-400 INR. Now speaking of the target when you are buying for intraday it is advisable for a secure trade you should keep a target of 1% as it is safe and achievable. So it means on a share of 300 INR you will earn 3 INR only. The main thing to keep in the notice is stop-loss. Stop-loss you will have to keep here will be 3 INR as the script price is low. So if you are taking a limit of 10 times you will have

 share price = 300 INR,

total no of shares= 666 shares,

 profit= 2000

 backup money =0

 stoploss= 2000

 In case you suffer loss in your Demat will be 18000 INR and no backup money. Back up money is very important while doing intraday trading. Now in case, you carry 50k INR you can keep a back u of 10-15k INR. With the rest of 40k INR, you can buy a share of range 1-1500 INR which is a good range. You can keep a target of 15 points while you can carry a stop loss of just 7-8 points. Which is almost 50% of your target which is a good ratio? This means now,

share price =1500 INR,

no of shares = 266 shares

profit =4K INR

stop loss =2K INR

backup money =10k INR.

It is clear when you carry a good investment your risk is lower and you also have backup money in case of loss. Make sure to trade on best bank nifty tips, best stock cash tips, best nifty50 tips, best stock future tips.

I think the answer to your question, ‘What is the right amount to start investing in the share market?’ is now clear to you.

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