Trading in the share market requires you to be aware of the recent market trends and news. While it offers the potential to earn a profit, you need analysis and constant monitoring of your assets to succeed in the financial market. Read this article to learn how you can increase your profit potential in stock trading in 2024.
How to Maximize Profit in the Stock Market in 2024?
The first and foremost step is to open a trading account with a SEBI-listed stockbroker like Dhan which ensures the reliability and safety of your funds. Here are the different factors that can help you increase the chances of earning profits and minimize the losses in the stock market:
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Keep an Eye on Market News
In order to pick good stocks, you need to keep an eye on market news and see how a particular sector or stock is reacting to any news. You can analyze which stock has the upside or downside potential and accordingly, you can take the position.
Often you find it difficult to get the information on a real-time basis and keep an eye on minute updates. This is where your stock market app can help you and will send you push notifications on the selected stocks.
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Use Technical Analysis and Indicators
If you are keen on earning high profits from shares trading, you need to use technical analysis indicators and chart patterns. This helps you identify entry and exit points and helps you maximize your trading potential in 2024.
These tools and indicators can be moving averages, Fibonacci retracements, candlestick charts, and more.
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Set Stop Loss Order
Stop loss orders will help you buy or sell stocks in an automated manner when they reach a certain trigger price. You can add the stock to your portfolio that has a rising potential and you can sell the stock that is falling.
You can set the trigger price for a buy order greater than the current market price of a stock. On the other hand, you can set the trigger price for the sell order at a level lower than the current price of the stock.
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Earn from Dividend
Dividend is the part of profits that companies announce and distribute to their shareholders. If you are just thinking about earning profits from a price appreciation in stock, you may be losing the chance of earning income in one go.
You can check out the list of companies that have announced dividends and you can buy the stock before the ex-dividend date.
Conclusion
You can maximize your trading potential in the stock market by analyzing the latest news and using technical analysis tools and indicators. Don’t forget to use stop-loss orders to automatically square off the position to limit the losses.
If you want to trade in stocks in an app that provides all the updated features, you can open an account on the Dhan. It offers easy and faster onboarding and helps you make informed decisions with its analysis tools.
