The Hindu Business Line : She's a tough rookie

She is one of those rare investor-cum-traders with nerves of steel. And it is not as though Mumbai-based Asha Todarwal is a seasoned market player or hardened trader in equity. She was a typical homemaker until she decided 18 months ago that since both her daughters were in college and she had some time on her hands, she would get active in the stock market.

A graduate who had, prior to her marriage, managed her father's clearing agent office with a staff strength of 350, Asha felt confident enough to deal in equity.

With her chartered-accountant husband's good friend, and Director of KRIS, Arun Kejriwal, taking on the responsibility of tutoring Asha, the woman made her entry into the stock market... and has never looked back.

"I decided to invest in equity because I was always interested in the stock market and felt that I could now devote 5 to 6 hours a day to this work without neglecting my home or family." But before that, from home she would watch the movement of the market and started in a small way by buying 50 to 100 shares. She would religiously note down everyday price movements — high, low, open, close and volume — of the stocks that interested her.

"I did that, and continue to do even today, because otherwise you tend to forget and I take a decision on how to buy or sell a stock by taking at least three days' price movement into account."

After this initial bout of home-work, Kejriwal "guided me on how to trade."

So these days, Asha goes to a broker's office every morning before trading hours and remains there till the market closes for the day. Her strategy, worked out in consultation with her guru, is that she buys shares with expectation of about 30 per cent profit, and "when I get this in 15, 30 days or more, I sell them."

She also trades in some shares for a shorter horizon if she finds a decent profit and even shorts a scrip if she is confident that it will go down on a particular day. "But I do this only if I have those shares in hand; so even if the price goes up, I can give delivery."

This strategy ensures that if she has shorted a share, she does not have to worry about the closing bell at 3.30 p.m. to square up her position.

Asha started with an amount given by her husband and she deals in about 50 to 80 companies. By looking at the numbers, she can predict the share price movement on a daily basis. She makes it a point to be in touch with her mentor every morning and says with a lot of pride, "I give him my views and he tells me where I'm right and where I'm wrong; over 90 per cent of the time I'm right. Then, according to the discussion, I put in my orders for the day." Some of the shares she buys and sells actively are GE shipping, Chambal Fertilisers, GMTC and Bank of India.

So how has her overall experience been?

The response comes with a broad smile, and a touch of the table. "Touchwood, I'm successful. One thing I've learnt is that if one is very careful, obedient to the teacher, regular and disciplined, 99.9 per cent can make money. But if you think you can just jump into the markets and are not careful, 99.9 per cent can lose money. It is easy to make money and easy to lose too in this market."

So how much does she make in a month?

"Oh, I never calculate... as long as I'm making money, I don't bother," is her confident response. But she adds that she has set certain limits for herself and adheres to them religiously. "I never go beyond 500 shares... if the value is small like that of Chambal (around Rs 34) then I buy or sell 1,000 shares. As I told you, I wait for a 30 per cent profit, but if I feel I've got a decent profit in a single day and should exit, I do so." In a month Asha expects and gets about 25 to 30 per cent return, but cautions that one can do so "only if you have holding power... and of course discipline; you should not exceed your budget."

Is her husband happy with her returns?

"Oh, he doesn't even look at my portfolio because Arunji is keeping a track!"

Asha's daily turnover is around a few lakh rupees but this too depends on the kind of trading day. "Today I shorted GMTC at Rs 380 and covered at 370. I sold 50 thinking I'd sell another 50 if it goes up; but it didn't. And I was not nervous because I'd bought it around Rs 330, so anyway, I'd have made a decent profit. If it had shot up, I'd have given delivery. I've been trained to sell only in parts because that way you get a better average price."

She also makes it a point to invest and trade in dividend stocks "because that gives you a double benefit. I've also shorted RCF today... I put in an order for 1,000 but only 250 went at Rs 39.5. I'll cover if I get at least a rupee or else give delivery because I had bought it at Rs 32 and would be making a decent profit and that too after getting the dividend," she says.

But doesn't she feel nervous as she watches the stocks going up and down on a volatile day?

"No, never. I'm not carried away by tips or rumours. I do my homework and deal in dividend yield stocks. I have absolutely no tension whatsoever when I go home in the evening... kuch nahi... I can see only the kitchen and the children when I go home. Market girey ya uthey merey pet ka pani bhi nahi hilta... (Whether the market has fallen or risen makes no difference to me). Even if a share goes up after I've sold it, I don't bother because I've made my money."

It sounds incredible but Asha says she hasn't had a single bad day at the market, except a solitary day, "and that too because of an error I made in punching the numbers before the trading began."

She wanted to buy 500 Vesuvius India at a particular price, but by mistake the quantity went in as 17,000 and at market price. She did panic, and called her husband who said don't worry and take delivery because it's a good company. "But Arunji said: `When it is an error, sell it off. Don't compound the mistake'. So I covered it. I had a loss of Rs 65,000 that day and felt very bad. But it also taught me a lesson... that overconfidence is bad and one has to be extremely careful."

Picture by the author

Response may be sent to rasheeda@thehindu.co.in

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