Nithin Kamath, Zerodha’s Co-founder and CEO said that trading is one of the toughest ways to make money in a tweet. In a series of tweets, he added that the kind of volatility in the last few months is making it even tougher.
“For most traders living in the social media bubble, it must seem like everyone except you is killing it trading the markets. FYI, it mostly ain’t real,” he said, sharing advice for stock market traders amid worries around inflation.
He said that the pressure to generate profits daily or monthly can lead to more mistakes. So in a way, traders who earn by talking or teaching trading have higher odds of winning. He added that traders should not trust every profitable screenshot that people share. They tend to find ways to make money from people.
He highlighted the escalating volatility in the Indian markets and explained that bear market rallies are usually quite ferocious. He said that shorts make more money than longs because markets tend to fall faster than they go up. However, bouncebacks after a fall make it really hard to book profits on time or continue holding shorts.
Nithin Kamath had mentioned earlier that he is not very active in managing his personal portfolio. His brother, Nikhil Kamath, who is also a co-founder of Zerodha, takes care of it.
“For me, it is really trading your time and effort where the risk to reward is in your favour. And I think, I am in the biggest trade of my life with Zerodha, which is the maximum outcome for my time and effort,” he had said.
Moreover, he said that he would have gotten back to trading, had the discount broking platform not become a hit. “Nikhil is a much better trader than me. When we started, the idea was he would trade & I attempt to build Zerodha. If it didn’t work, I’d get back to trading. It did & Nik continues trading full-time. His trading profits the first 2 years is how we could build without VCs,” he explained.
Benchmark indices edged lower on Tuesday after three consecutive sessions of gains. Oil prices rebounded after last week’s rout and Indian markets traced the weakness on Wall Street. After a slip, this morning, the fifty-share index is trading at 15,825.05 points, while the thirty-share index is trading at 53,100.47 points, marginally lower than the previous close.
Written By – Simran Bafna
