I want to use stock trading for extra income: how to get started?

Published: December 23, 2020 at 11:12 am

Last Updated on December 23, 2020 at 11:12 am

Sanjay asks “I want to take up stock trading to generate extra income. How should I get started?” We asked Amit Aroa a full-time stock trader to answer this question; what Sanjay should be aware of and some resources he can follow to get started.

Readers may also refer to the Day Trading Lessons of a College Student for additional insights. No part of this article should be considered investment advice. The opinions of the authors do not represent that of the editor or freefincal.

Sanjay has not mentioned his age; assuming he would be in his early 20s; I would recommend that he first focus on studying or learning new skills for additional income and only then consider stock trading. A person interested in stock trading should first appreciate the financial and emotional risks involved and should not jump in without preparation.

The very first step should be to learn the skills required for doing trading in the stock market. The various online You-Tube videos, courses are available for learning on social media. On the other hand, he/she should join Workshops by reputed Trainers during weekends and should focus on learning first.“First Learn and only then make” L” as silent and Earn”.

Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!
🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥

Capital Protection and Allocation should not be ignored. Income is generated not just by skills. Substantial Capital is required too. So one needs to understand that in the stock market, he/she should have skills and Capital both.

Paise se Paisa Banta Hai: Money makes Money

The next most important point to remember is that your Capital can become Zero overnight if your position is not hedged in trading. “Risk management is key in Stocks Market.”

In a nutshell, Sanjay should take up trading only if the below conditions are met and satisfied: 

  1. Should first have the theoretical knowledge, skill and understanding of tools used for Stock Market trading, including Technical Analysis & Risk management. There are so many resources for Learning of Trading in the Stock Market. Below mentioned are some of the references which I follow or have connected with them personally for Trading Learning:
    • Youtube Channels Subscription :
      • Pro Capital Mohd Faiz
      • Power of Stocks
      • Trading Chanakya
      • P R Sundar
      • Theta Gainers
      • Ghanshyam Tech
      • Nitin Bhatia
    • Workshops of P R Sundar, Pro Capital Mohd Faiz and Theta Gainers are the most amazing to be attended for learning. These are paid workshops conducted, and the details can be ascertained in their YT Channels.
    • Twitter Handles which are very good in guidance, recommended to be followed are : 
      • @PRSundar64
      • @SJosephBurns
      • @SubhadipNandy
      • @kunalsaraogi
      • @Neha_trade
      • @RajarshitaS
      • @Vishvesh03
      • @bhatiamanu
      • @Mitesh_Engr
    • Telegram Channel
      • For Index Options Trading: @nitinmurarkasmc
      • For Study Material – e-books, Journals, Videos: @Stock market education (India). 
  1. Should have done Paper/Virtual trading before putting himself on Actual trading. There are few good Platforms wherein Paper trading can be done like : 
    • https://opstra.definedge.com OptionOpstra has most of the features as free for Paper trade, and tracking can be done on a real-time basis in the live market. 
    • https://sensibull.com Sensibull nominal subscription fee to be paid and paper trading and strategy building are more advanced than OptionOpstra. Also, Sensibull has tie-up with various brokers like Upstox, Motilal Oswal etc. for the interface.
  2. Should have a trained and experienced Mentor. Choosing a mentor is a very tedious task in the entire process of Learning. In Stock Market No-one is perfect. Everyone is and should be a student here. However based on the recommendation of learning resources provided in Point no. 1, the appropriate Mentor(s) can be chosen. For choosing Mentor, remember a beautiful line 
    • “A mentor is someone who allows you to see the hope inside yourself.” — Oprah Winfrey.
  3. Appropriate Capital to take up Stock market trading as a business, not as gambling with the understanding of 2-3% return per month.

If the above conditions are met, then it’s “Yes” for the Topic else… “BIG NO”.

Do share this article with your friends using the buttons below.

🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! More than 1,000 investors and advisors use this!
New Tool! => Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
Follow Freefincal on Google News
Follow Freefincal on Google News
Subscribe to the freefincal Youtube Channel. Subscribe button courtesy: Vecteezy.
Subscribe to the freefincal Youtube Channel.
Follow freefincal on WhatsApp Channel
Follow freefincal on WhatsApp
Podcast: Let's Get RICH With PATTU! Every single Indian CAN grow their wealth! 
Listen to the Lets Get Rich with Pattu Podcast
Listen to the Let's Get Rich with Pattu Podcast
You can watch podcast episodes on the OfSpin Media Friends YouTube Channel.
Lets Get RICH With PATTU podcast on YouTube
Let's Get RICH With PATTU podcast on YouTube.

  • Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
  • Have a question? Subscribe to our newsletter using the form below.
  • Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.

Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!

About The Author

Pattabiraman editor freefincalDr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course!  Increase your income by getting people to pay for your skills! More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!   
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Both boy and girl version covers of Chinchu gets a superpower
Both the boy and girl-version covers of "Chinchu Gets a superpower".
Most investor problems can be traced to a lack of informed decision-making. We made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So, in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it, as well as teaching him several key ideas of decision-making and money management, is the narrative. What readers say!
Feedback from a young reader after reading Chinchu gets a Superpower (small version)
Feedback from a young reader after reading Chinchu gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)