Zerodha CEO Nithin Kamath explains why trading is one of the toughest ways to make money

Nithin Kamath, the co-founder and CEO, Zerodha, said trading is one of the toughest ways to make money and the kind of volatility in the last few months is making it even tougher.

Sharing a piece of advice for stock market traders amid worries around inflation and policy, the stock trading platform's co-founder said, "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."

Highlighting the escalating volatility in Indian markets, Kamath explained that bear market rallies are “usually quite ferocious”. “While shorts make money faster compared to longs because markets tend to fall faster than they go up. But bounce backs like these after a fall makes it really hard to book profits on time or continue holding shorts,” he said in a series of tweets.

When asked whether he trades, Kamath had earlier said, "I have not taken a single trade after 2010 (except to test the platform). But I still consider myself a good trader. I believe that a lot of people think that trading is just about trading in stocks."

"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.

In terms of investments, Kamath said that he is not very active in managing his personal portfolio. That is being taken care of by his younger brother, Nikhil Kamath, who is also a co-founder of the online brokerage platform.

Meanwhile, benchmark stock indices rose for a third straight day on Monday on buying in IT, banking and FMCG shares triggered by gains in global equities following easing inflation concerns.

The 30-share BSE Sensex jumped 433.30 points or 0.82% to settle at 53,161.28. During the day, it rallied 781.52 points or 1.48% to 53,509.50.

The NSE Nifty 50 index rose 0.85% to 15,832.05, and the S&P BSE Sensex climbed 0.82% to 53,161.28, with both the indexes gaining for a third straight session.

The Nifty IT was the best performing sub-index in Mumbai today, jumping 2.3% to its highest since 10 June, boosted by a 2.8% rise in heavyweight Infosys.

The Nifty Metal index, which has fallen sharply this month, climbed 1.5%.

"While the change in mood has come as a major relief, the optimism may remain for a few more sessions before the market turns volatile amid concerns over slowing global economy due to rate hikes and continuing foreign fund outflows," Shrikant Chouhan, head of equity research (retail) at Kotak Securities, said.

Worries around inflation and policy have driven the benchmark indexes down around 4.5% each for the month till now, putting them on track for their worst month since Covid-hit March in 2020.