Stock exchanges can be one of the most difficult and risky places in the world to make money, especially through futures and options trading. However, there are some who crack it and continue their full time job as well. Burdwan, West Bengal-based Kavita, who is currently working full time as an IT professional in an Australian company, has been successful in options trading.
Kavita learned the value of earning money and the art of saving it at a very young age. Being a meritorious student since childhood, she started running tuition sessions at the age of 14, earning up to 250 monthly fee from each of his students.
“When I was young, my grandparents and relatives used to give me money as a token of love when I went to their house. I used to save that money with my mother as she would pay some interest amount based on the tenure , he kept that money with him,” says Kavita.
how can one save money
Kavita believes that it is parental support in the early years of your life that is indispensable and the deciding factor of your success. She says her parents taught her that one can save money by controlling their spending habits.
Kavita continued teaching part-time during her college days. Despite being a topper since childhood, Kavita chose a college near her hometown as her father could not afford the hostel fees. That’s why she used to travel in buses for three hours a day. After reaching her home in the evening, Kavita started giving tuitions in higher classes till 9 pm. By then Kavita had increased her tuition fees. Taught maths and science to 400 more school students. The idea of getting extra income gave him the pleasure of being “independent”.
His teaching journey came to an end after he got his first job in an IT company in Pune. During her training period, Kavita saw her cubicle mate dabbling in stocks. And that was the first time Kavita heard about the stock market. Since Kavita always had a habit of earning extra income for herself, she decided to learn more about stock trading. Kavita says that her colleague introduced her to stock trading. Apart from this, he also gained knowledge through professional newspapers and magazines.
Soon, Kavita started intraday trading and registered a profit of 200- 400 per day in the initial phase. But business was an on-and-off affair for him. Kavita took a big leap in investing in the stock market when she . took a personal loan of 3 lakhs to build a portfolio. He said that he saw his colleague apply for Career Point IPO and took a loan after getting a huge return on listing. This decision proved to be a turning point as it not only sparked his interest in the stock market but also aroused the enthusiasm of a trader to overcome all odds.
But the loan papers reached his home address and his parents were furious. “My parents, like most families, believed that the stock market was nothing more than gambling and that no one made money from it,” she said.
What filled his heart with pride was when he showed him that his portfolio had grown in size. 2 million.
However, Kavita says that she got a formal understanding of other aspects of trading during a training session organized by the brokerage on Futures and Options in 2016. Kavita then started trading in futures but lost a good amount in doing so. At the same time, he also started reading what mutual funds and big investors did to make up for the losses. It was then that he discovered the covered call option strategy.
“Options trading solved a long-standing problem of mine – making money in a sideways market,” she said.
She quickly mastered the ropes in options strategies and was able to generate decent returns on her capital. Describing herself as a positional trader, Kavita trades on weekly and monthly options.
Despite his success in business, he believes that trading should not be the only source of one’s income.
He enthusiastically said that instead of relying solely on the stock market, there should be an additional source of income. His advice to newcomers to the stock market: Keep working and keep the stock market as your side until you have accumulated enough money, knowledge and confidence in the stock market.
Kavita also got its fair share of losses. His biggest loss ever in the stock market was 8 lakhs.
However, through her learning and experience, she now earns good returns annually through options trading. The biggest advantage of Kavita in options trading has been 14 lakh in a single day so far.
Being a ‘guru’ in the stock market now, he suggests that people acquire in-depth knowledge about stocks and then invest, but “always start with a small amount”.
“Suppose if someone has Anyone with a capital of 10 lakhs can invest from 50,000 1 lakh in the beginning. No one should put all their money in the market,” she explains.
Kavita says her success mantras are ‘hard work’, ‘consistency’ and ‘discipline’, and her ultimate goal is to give back to the society. While not revealing much about his goals, he just said, “There are many social issues in the country but will focus more on the problems related to women and try to solve them”.
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