Learn to Day Trade - Get Free Mini Course

Monthly Income From Stocks: How Many Shares Do You Need To Buy For a Monthly Income?

How much can you make from stocks in a month?
In this post we answer the question, ‘How much can you make from stocks in a month?’ and the two ways to go about it.

If you are wondering, ‘how much money can you make from stocks in a month?’, then wonder no more as this article was written to answer that very question! In my opinion, it’s definitely possible to make a good monthly income from stocks, if you have the right knowledge and methods in trading principles and fundamentals. And in this post I will help you with that. 

But first let’s talk about exactly how you can make a good monthly income through the stock market. There are two types of trading that help you to make money that in my opinion will set you up for making a consistent income through trading the stock market.

1. Day Trading (Intraday Trading)

2. Delivery TradingWhen it comes to day trading, really the principle is simple as all you need to do is to make purchases and sell your purchased stocks on the same day. Just remember that whatever you purchased, will be automatically sold out 15 minutes prior to the market close. This is very important to be aware of and keep track of.

Related Read: Best Movies About the Stock Market

In delivery trading, you can purchase the stocks of a particular company, and you can sell them whenever you want. It means you can sell them either on the same day or you can take days/months/years to sell them (swing trading vs day trading). It is one of the best ways to hold assets and sell them with good revenue.

Recommended Read: What is SSR in Stocks?

So, how many shares for a monthly income from stocks?

Then the next question you are probably wondering about is, ‘how many shares do I need to buy for a decent monthly income from stocks?’.

This depends on what your monthly income target is and of course how much capital you have to invest in stocks as well. But if you were to say, my target is $1000 per month of income from stocks, then, you must invest at least $100-$1000 in order to be able to earn that $1000 monthly income from stocks. There are other factors involved of course such as, the company’s progress, which will determine the value of the stocks you hold. 

Here are the most important considerations when it comes to a methodology or plan for investing and will determine how much money can you make from stocks in a month.

1. Invest $100 each in the ten best companies you determine are solid investments. This requires you to do a lot of research. You will need to check the company’s historical data and ratios before investing.

2. Also remember that despite the research you do (which will go a long way in determining how successful your investments are) company’s can still have their stock drop in price – nothing is guaranteed! It is possible that a company can give you a good Return on Investment or ROI and take your capital from $100 to $300 or even more. But, it is also possible that a company can lose value and decrease the value of your investment from $100 to $50. But there is also the option whereby you can purchase more stocks at a price of $50 so that you can cover the investment and make profits.

Intraday is one of the best options to make monthly earnings in stocks.

3. Intraday is one of the best options to make monthly earnings in stocks. Through this trading option, you can put in less money and purchase the whole stock and you can sell it once you receive your revenue. You can also do commodity trading and currency trading.

Let’s look at an example to understand it better. Say you purchased a share of $100 by paying just $10 for it, and you can sell when the share reaches $110-$120. If you purchase 10 shares by paying just $100, you can make $100 in a single day and if you purchase 100 shares by paying $1000, you can make $1000 in a single day. The most important thing you should keep in mind is your study about the company and your skill to invest that rewards your study and knowledge so you can sell and cash out with a profit.

If you are not a professional investor, you are just a beginner then, it would be best to do intraday trading with very low money i.e lowering your risk. This way even if you lose (which is quite likely if you are a beginner), you don’t feel completely devastated and give up on day trading as a means to earn income online altogether. 

I would have to say that in my opinion delivery trading is the better option for beginners as it does not require such intensive sessions of drawing up and looking at charts. You really only need to buy and hold a stock you think has good potential and sell whenever the price goes up.

Can you make a monthly income from Stocks?

Yes, it’s totally possible for you to consistently make a monthly income from stocks. It is also very possible that you will suffer losses (which is natural and happen a lot) and you could face losses in your pocket but, on the remaining days, you can make a good profit. And overall if you can make more on your winning trades than the amount you lose on a losing trade then you can, over time, make a good monthly income. 

One helpful tip I would recommend is for you to open a trading broker account. This way you can also (after also doing your own research of course) follow the broker tips along with your own study which could definitely help to make a good income through stocks.

Recommended Read: Make a living trading futures


Take the FREE Mini Course

Learn to read the markets with confidence and ease (without any financial background) in the next 7 Days

How much money can you make from stocks in a month? Final Thoughts

First of all I hope this post has helped you to realize that yes it is totally possible to make a decent income each month through stocks. 

And we have discussed the two ways you can achieve this which are i) Da Trading and ii) Delivery trading. And as discussed I would recommend for newer traders that Delivery trading is probably the better entry point for getting into stocks and eventually making a good monthly income.

But to really answer the question of ‘how much money can you make from stocks in a month?’; we have also discussed that this depends on how much capital you have to invest as well as your skill and knowledge in stocks that will ultimately determine what kind of monthly income you can earn through stocks.

But at the end of the day you can only start earning if you dive in and get started in the stock market and the best approach I can suggest is to simplify trading technical analysis and indicators to learn the basics from which you can build complexity later.

Monthly Income From Stocks