How Traders Earn High Amounts - Complete Guide
1. Understanding Market Movements
High-earning traders study price patterns, market trends, news, earnings, and global events. They predict
market direction using tools like RSI, MACD, candlestick patterns, and volume.
2. Using Large Capital
Big traders invest large sums, turning small percentage gains into large rupee profits. For example, 10% gain
on Rs.10 lakhs is Rs.1 lakh.
3. Using Leverage (Margin Trading)
Leverage lets traders borrow money to increase position size. For example, 5x leverage on Rs.1,00,000
gives a position of Rs.5,00,000. Profits and losses are both magnified, so caution is needed.
4. Frequent Trading Styles
- Scalping: Quick trades in seconds/minutes.
- Day Trading: Buy and sell within the same day.
- Swing Trading: Holding for days or weeks to catch trends.
5. Backtesting and Strategy
Successful traders backtest strategies using historical data. Common strategies include RSI/MACD
crossovers, support/resistance trading, and news-based trades.
6. Risk Management
Top traders never risk more than 1-2% of their capital per trade. They use stop-losses and maintain discipline
to avoid emotional decisions.
How Traders Earn High Amounts - Complete Guide
7. Example of a Successful Trade
A trader buys 1,000 shares of a Rs.500 stock, expecting a rise to Rs.550. Total cost = Rs.5,00,000. Selling at
Rs.550 gives Rs.50,000 profit in a short time.
8. What Successful Traders Avoid
- Gambling or acting on rumors.
- Chasing losses.
- Trading without a plan.
- Skipping education or risk control.
Summary
High-earning traders combine capital, skill, analysis, and risk control. They lose often, but keep losses small
and let profits grow. Success in trading comes from consistency and strategy.