Zerodha co-founder Nithin Kamath has cautioned traders against taking aggressive bets in the current market environment, saying survival should take precedence over profit-making as global markets remain highly volatile and increasingly driven by unpredictable headlines.
In a post on LinkedIn, Kamath said the current setup has made trading unusually difficult, with sharp swings on both sides leaving little room for conviction-based positioning. According to him, the best approach in such conditions is to significantly cut risk, reduce exposure, and focus on capital preservation rather than chasing returns.
“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,” Kamath said.
His remarks come at a time when markets have been reacting sharply to geopolitical developments, policy statements, and overnight global cues, leading to frequent reversals and elevated volatility across asset classes. For traders, this kind of environment can be especially punishing, as even well-planned positions can quickly turn against them due to sudden news flow.
Kamath said that when markets are being driven more by headlines than by clear trends or fundamentals, traders should not aim to maximise gains but instead focus on staying in the game. He noted that one of the most practical ways to navigate such a market is to reduce the size of trades and avoid taking outsized positions.
Cut overnight exposure, protect capital, says Kamath
“The only way to survive as a trader in this market is to make survival the first goal, not making money,” Kamath said, while adding that traders should “trade with smaller amounts of capital, reduce the risk in your account significantly, and wait for opportunities where you can actually make money.”
He also pointed to the near-term trading setup as an additional risk factor, highlighting that there are three holidays in the next seven days — a condition that could amplify uncertainty because of extended gaps between trading sessions and a potentially heavy news cycle during market closures.
Kamath said such a setup “almost guarantees a news cycle that can swing markets either way,” suggesting that traders should carry even smaller overnight positions during this period.
Beyond the financial risk, Kamath also drew attention to the emotional and psychological strain that comes with active trading. He described trading as an inherently lonely activity and said the constant feedback loop of profits and losses can take a significant mental toll on market participants.
“Trading is also inherently a lonely activity. And when you’re constantly getting feedback in the form of profit and loss, it takes a mental toll,” he said.
With a long weekend approaching, Kamath said stepping away from the screen may be the smarter move for many traders. He suggested that taking a break, recharging, and returning with a fresh mind could be more valuable than trying to force trades in an uncertain environment.
“There are also 3 holidays in the next 7 days, which almost guarantees a news cycle that can swing markets either way. Even smaller overnight positions,” Kamath stated.
His message, in essence, was simple: in a market dominated by noise, discipline and survival matter more than aggression.
Stock Market Holidays
There are two holiday-shortened weeks in the Indian stock market to mark the occasions of Ram Navami, Mahavir Jayanti and Good Friday.
The first holiday will fall this week on Thursday, March 26, on account of Shri Ram Navami. Meanwhile, the next week will see only three trading sessions with a long weekend due to a holiday on Friday. On Tuesday, March 31, both BSE and NSE are closed for Shri Mahavir Jayanti and on Friday, April 3, the exchanges will remain closed for Good Friday.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
