Can You Earn Rs. 500 Daily with Just Rs. 5000 in INTRADAY TRADING? 

Intraday trading offers a thrilling opportunity to make daily profits in the stock market, but many wonder if it's truly possible to earn a consistent amount, such as Rs. 500, by investing just Rs. 5000. In this guide, we'll explore this question by diving into a real-world example using the Kite Zerodha platform. Let's walk through the steps to understand how you can achieve this.

Understanding the Setup on Kite Zerodha

To start, let’s look at the trading platform, Kite Zerodha. This platform is user-friendly and widely used by traders for its advanced charting tools and ease of use. In this example, we’ll focus on Nifty Bank Options, which are listed in our watchlist.

On the platform, you will notice that there is a chart showing the price movements of these options. This chart is crucial as it helps you analyze market trends and make informed trading decisions.

Identifying the Right Options to Trade

For our strategy, we are specifically looking at a call option for the strike price of Rs. 39,300. This option is categorized as "Add The Money," which means its strike price is close to the current market price of the underlying asset.

Here’s where it gets interesting: the cost of buying this call option is around Rs. 4800. Additionally, there is a put option for the strike price of Rs. 39,400 available at approximately Rs. 4600.

Since it was  weekly expiry for these options, the prices were slightly lower, making it an ideal day for trading with minimal capital. On weekly expiry days, the premium for options is generally lower due to the decreased time value, allowing traders to enter positions with less capital.

Executing the Trade and Achieving Profitability

Given these prices, you can start trading with less than Rs. 5000. However, this amount could fluctuate depending on the market conditions. The key here is to have a solid understanding of market trends and trading strategies to maximize your returns.

For instance, I was able to earn Rs. 542 by trading a single put option at the strike price of Rs. 39,400. This was achieved through careful analysis and understanding of the market movement. With practice and skill, achieving a daily profit of Rs. 500 is entirely possible, even with a starting investment of Rs. 5000.

Intraday trading with a small capital investment requires knowledge, skill, and the right tools. By utilizing platforms like Kite Zerodha and focusing on options trading during strategic times like weekly expiries, you can optimize your chances of making consistent profits. However, remember that success in trading comes with practice and a thorough understanding of market dynamics.