ETMarkets Trade Talk | NRI techie doubling money every year by selling Nifty Bank options

“Being in a different time zone gives me the privilege to do trading with a full-time job as most of my office tasks have finished by the time the Indian market starts. So my trading doesn’t impact my job, and similarly, my job doesn’t impact my trading,” says the NRI.

Although making money as an options trader isn’t as easy as it sounds, the techie says she has managed to double her capital every year for the last 3 years. Her trade book size is now around Rs 2 crore.

Edited excerpts from a chat with techie-cum-trader Kavita:

We do not see too many Bengalis and women in the stock market. So tell us, how did you find your forte in trading?
I heard about the stock market around 11 years ago when I was a fresher and working for an IT MNC. My cubicle mate told me about stock markets as she has got some experience working with one of the broker firms. That was the kick-off point for me. Initially, I used to just do some intraday trading, like buying some stocks for small targets.

I didn’t know about the stock market before that, as none of my family members had ever invested in the market.a I have always seen my parents doing fixed deposits or some other forms of traditional savings. The stock market was no more than a gambling hub for my family.

But I think the urge of gaining some extra income which was there in me from childhood, helped me start my stock market journey along with my job.

I believe women are good at decision-making, managing things and avoiding risk. That gives me an extra edge being a woman trader.

How do you manage the two worlds of a full-time job and day trading?
Being in a different time zone (Australia) gives me the privilege to do trading with a full-time job, as most of my office tasks have finished by the time the Indian market starts. So my trading doesn’t impact my job, and similarly, my job doesn’t impact my trading.

I strongly believe if you have a strong passion for something, you will definitely take out time from your busy schedule, and that’s how I am able to manage my passion for trading along with my job. The habit of multitasking, which I learned at a very early age, is helping me a lot.

You are an NRI with a well-paid job at an MNC in Australia. It is like a dream come true for many Indians. So what makes you go to that extra length and sit with your laptop for trading once your office work is over? Is trading just about making some more money?
I sit for more than 6 hours a day in front of my laptop screen after office work. It’s almost 9 pm in my time zone when the Indian market ends. And at the end of the day, I feel a sense of fulfilment and satisfaction from trading.

It would be wrong, if I say I don’t have the urge to earn extra money. But with that urge for making some extra money, trading has become a passion for me. I think I would not be able to leave it at any point in time. Trading has become more of a passion, which makes me happy and satisfied.

Can you share how much returns you have made this year and how big is your trade book? What percentage of your salary do you keep aside for trading?
I have been doubling my capital every year for the last 3 years. My initial capital was around Rs 25 lakh, and I have never taken money out of my trading account. My trade book size is now around Rs 2 crore.

I don’t keep any percentage of my salary for trading. Only during my initial years, I invested my savings from my salary for trading, and afterwards, I am just compounding that money.

What is your trading strategy on a typical day?
I pick my trades purely on price action, based on how much risk I am going to take – entry point and risk:reward ratio. Indicators are not a 100% confirmation. If my defined support and resistance are validated by volumes, I am ready to enter the trade. The levels, which I watch are the previous day’s high and lows supported by previous day’s VWAP close. I trade purely based on price and volume, which is the biggest indicator for me to enter any trade.

(Disclaimer: The Economic Times doesn’t endorse any product or service that may be offered by the expert)