Having a bad day trading? Zerodha's 'Kill Switch' feature is here to help
1 min read 23 Jun 2021, 07:38 AM ISTFor those making losses, stockbroker Zerodha has just added a new Nudge called 'Kill Switch'
PremiumWhat do good traders do when making huge losses? Stock markets remain very volatile due to global cues, and aggressive trading when in drawdown rarely works out well for traders. Stockbroker Zerodha CEO Nithin Kamath says that when making losses, these traders either reduce their trading size significantly or take a break from trading. According to him, this is maybe the only mantra to survive trading the markets in the long run.
For those making losses, stockbroker Zerodha has just added a new Nudge called Kill Switch which will help investors with their trading discipline and risk management.
"When you're in a drawdown while trading, the best thing to do is to take a break. Otherwise, the chances of you being irrational, taking large bets, overtrading & blowing up are high. And to nudge you to do just that, we now have a 'Kill Switch," Zerodha CEO Nithin Kamath tweeted.
What is a Kill Switch?
If you want to disable a particular segment or take a break from trading, you can use the kill switch feature and temporarily disable the segment.
How to use the Kill Switch?
To use the Kill Switch and deactivate trading, visit Console -> Accounts -> Segments.
"Enabling the Kill switch will instantly disable trading. Currently, this is manual. But we are working on automating this where you can set a maximum loss. Hitting this will trigger the Kill Switch instantly and disable trading in your account so that you can take a break," Nitin Kamath further added.
How to disable a segment?
Log in to the account section on Console and choose the segments you wish to disable and confirm. In the absence of any open orders or positions, the segment is deactivated within 5 minutes. Once a segment is disabled, you can only re-enable it after 12 hours.
Zerodha CEO further added that taking a break when things are not fine is not only in terms of investing in stock markets but is advisable and helpful in all aspects of life.
"I think taking a break when things aren’t going well can be super helpful in all aspects of life. And launching products & features that I wanted as a trader built by our amazing tech team, is the best part of my life. I feel like a kid in a candy store," he said.
