Zerodha’s Nithin Kamath Flags Volatility, Urges Traders to Focus on Survival Ahead of Holiday Week
India’s retail trading community has been put on alert by Nithin Kamath, Founder and CEO of Zerodha, who has cautioned traders about rising uncertainty in global markets and the risks of aggressive positioning.
In a recent LinkedIn post, Kamath highlighted how markets are increasingly being driven by unpredictable global cues and decisions by influential individuals. He noted, “It's crazy that we live in a time when the entire global financial market seems to be at the whim and fancy of what one person decides to do, and he can, and does, do whatever he wants depending on which side of the bed he wakes up on.”
Focus on Survival, Not Profits
Kamath stressed that traders need to rethink their priorities in such conditions. Instead of chasing returns, the focus should shift to protecting capital.
He said, “The only way to survive as a trader in this market is to make survival the first goal, not making money.”
According to him, frequent market reversals are making it difficult to hold positions. This “whipsaw” effect is leading to losses on both sides of trades. In such a situation, reducing exposure becomes critical.
“The most logical thing is to trade with smaller amounts of capital, reduce the risk in your account significantly, and wait for opportunities where you can actually make money,” he added.
Holiday-Shortened Week Adds to Uncertainty
Kamath also pointed to the upcoming cluster of market holidays as a key risk factor. Indian markets will remain shut on occasions like Shri Ram Navami, Mahavir Jayanti, and Good Friday within a short span.
This creates a long weekend effect, where global developments can trigger sharp moves when markets reopen.
He warned that such breaks often lead to unpredictable news cycles, increasing the risk for traders holding overnight positions. As a result, even smaller positions can carry outsized risk.
Mental Pressure of Trading
Beyond market strategy, Kamath also spoke about the emotional side of trading. He pointed out that trading is a solitary activity, and constant profit-and-loss feedback can take a toll on mental health.
“Trading is also inherently a lonely activity… it takes a mental toll,” he noted, reflecting on his own experience as an active trader.
Take a Break When Needed
With volatility high and opportunities limited, Kamath suggested stepping away from the screen when needed.
“So with a long weekend coming up, I can't think of a better time to take a break, recharge, and come back… with a fresh mind.”
Broader Market Context
His comments come at a time when global markets are reacting sharply to macro signals such as interest rate expectations, geopolitical tensions, and policy decisions from major economies. Indian markets have also seen increased intraday swings in recent sessions, reflecting this uncertainty.
For retail traders, the message is clear: this is not the time for aggressive bets. It is a time for caution, patience, and disciplined risk management.
Muskaan Kapoor