Home >Companies >News >Zerodha co-founder on how traders can avoid mistakes with its new feature

Online brokerage Zerodha's co-founder Nithin Kamath recently shared how the website's new "Nudge" feature is able to educate users & help them avoid mistakes they tend to make during order placement.

''Most people don't spend time learning trading or forget what they've learnt when placing an order. The order placement step is also when users pay maximum attention. With "Nudge" we are now able to leverage that fraction of a second to educate users & help them avoid mistakes,'' Nithin Kamath, CEO, Zerodha said in a tweet.

Sharing a screenshot as an example he said, ''This Nudge on DHFL warning customers that the investment may go to 0 discouraged over 50% of our users from taking a trade. Similarly, it was 70% for Lakshmi Vilas Bank when its price was spiralling down to 0 after a similar restructuring process.''

''Penny stock volumes as a % of their overall equity volumes have dropped by ~60% after Nudge alerts last year. And post TOTP nudge for dubious stocks & illiquid options, the frauds by sending fake SMS and setting up phishing websites are almost zero now,'' he said.

Zerodha had recently announced that it has added a new option to its ‘Nudge’ feature on Console — portfolio and trade tagging, which can be used as a trading journal and to track investing goals.

Under the Nudge feature, which was launched last year, investors are warned when they're about to break basic trading rules such as trading in risky illiquid instruments and penny stocks.

According to the broking house, investors can tag the exact reason for taking a trade in the profit & loss (P&L) statement or on the holdings or positions page, acting as your trading journal that will also display your performance.

Console is the backoffice platform for a Zerodha account and it's the central dashboard where investors can place withdrawal requests, keep track of their credits and debits, view as well as keep track of portfolio of positions, stocks and mutual funds.

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