5 Smart Ways to Make Money in the Stock Market

Many people are drawn to the stock market by the allure of short-term returns, often gravitating toward trading and derivatives. However, according to data issued by SEBI, 90% of traders lose money, with only the top 10% consistently profiting. While trading can be lucrative when done with the right skill, patience, and capital, it requires a significant commitment. Today, we’ll explore 5 smart ways to make money in the stock market using data-driven strategies.

Top 5 strategies to make money from stock markets

1. Preferential Issuance

Preferential allotment is a process where a company issues shares or convertible securities to a select group of investors, rather than through a public offering. This method is typically used to raise capital. This Preferential Issuance bucket compiles a list of 143 companies currently that have raised funds through this method. 

A study of this list revealed that over 70% of these companies delivered more than 50% returns. This indicates that companies raising funds through preferential issuance are often in a growth phase, making them attractive investment opportunities. By carefully analyzing the companies in this bucket, investors can identify promising stocks to add to their portfolios. 

2. Promoter Buying

When a promoter or owner of a company, such as the CEO or MD, buys shares of their own company, it signals strong confidence in the company's future. For investors, this can serve as a small assurance that the company's leadership believes in its growth potential. The Promoter Buying bucket on Sovrenn highlights companies where promoters are increasing their stakes, offering investors a chance to align their investments with those who are managing the company operations.

 3. Order Book

An order book reflects the orders a company has received to manufacture goods or provide services. Once fulfilled, these orders translate into sales, boosting profits and positively impacting the company's share price and market capitalization. 

For example, Bondada Engineering has an orderbook of Rs 3,047 crores in hand and its stock rose from ₹30 to ₹680 in just one year—a 20x return. This exemplifies the power of order book investing. The Order Book bucket can help investors identify companies with strong order pipelines, providing insights into potential high-growth opportunities.

4. Curated Bulk Deals 

The curated Bulk Deals bucket provides a comprehensive list of significant bulk transactions carried out by High Net Worth Individuals (HNIs) and institutions. This feature allows you to gain insights into where these influential market players are investing, enabling you to conduct further research on these stocks and strategically build your own positions.

5. Large order recepits 

Large order receipts is a curated list showcasing companies that have received orders significantly larger than their typical order size. When a company secures an order that greatly exceeds its usual order book, it presents a unique opportunity worth further analysis for investment purposes.

For example, a company with a market capitalization of ₹100 crore receiving an order worth ₹300 crore represents an extraordinary event, making it a compelling candidate for deeper investment consideration.

(All the above data compiled from sovrenn.com – India’s first stock discovery platform)

Summary – This type of information can be a powerful tool for making money in the stock market. It's smart, actionable data that can give you an edge. One particularly valuable resource for stock market data is Sovrenn , India’s first and only stock discovery platform. Sovrenn offers a rich blend of qualitative and quantitative data, with a "Discovery" tab that features various curated data buckets highly valued by users.