‘Only easy bit about trading is starting’: Zerodha’s Nithin Kamath tells investors

Zerodha founder and CEO Nithin Kamath has shared some of his insights about trading in a recent tweet. He said that the only easy part about trading in the market is starting it. Kamath further explained that active trading is like running a business and only a small percentage of them succeed.
 
“I’m surprised that, so many are surprised that just 1 per cent of active traders make more than bank fixed deposits over 3 years timeframe. Active trading is like running a business, only a small percent succeed. The only easy bit about trading is starting trading,” he tweeted.

The Zerodha boss also advised traders to have an alternate source of income as it is then that they “tend to do better or have higher odds of winning than those who rely only on trading for a living.”  He added that the pressure to generate profits daily or monthly can lead to more mistakes while also noting that traders should “trust every profitable screenshot that people share to find ways to make money from you.”

He also raised concerns over the “disturbing trend” of Indian start-ups incorporating outside India. “New start-ups building for India but incorporating outside India is a disturbing trend. While even now startups are largely funded by foreign VCs, there is wealth creation in India through founders, angels and ESOPs. Also, the taxes on realised capital gains benefit India,” Kamath tweeted.
 
He also quoted a dialogue from Shah Rukh Khan’s Swades to describe the current situation, “Apni chaukhat ka diya, giving light to neighbour’s house”. Kamath also urged the Indian government to take steps to improve ease of doing business and create reasons for foreign investors to nudge founders to be incorporated within India, not outside.

Also read: 'Businesses should let the product do the talking': Zerodha CEO Nithin Kamath on the idea of 'conscious' biz

Also read: 'Disturbing trend': Zerodha's Nithin Kamath on Indian start-ups incorporating outside country