India’s No. 1 brokerage company owner nithin kamath what he said?
Trading actively is the toughest way to make easy money in life, unlike what most people think. Also, it can be quite stressful & stress can snowball.
To trade well, you need to trade less—both no of trades & capital. -nithin kamath ( zerodha co- founder)
This just made me realise—once again—that nothing is more important than good health and leading a stress-free life
The key to leading a stress-free life is to get rid of all the unnecessary sources of stress, which we artificially impose on ourselves. No points for guessing – active trading is one. Active trading is a serious source of stress, and unfortunately, no one talks about it
Most folks trade for the heck of it. Common reasons include ‘I don’t want more, even if I can make enough for daily expenditure that’s good enough for me’. And their daily expenditures include their daily cigarettes—the irony 😐—and tea expenditures
It starts with this premise and then quickly escalates to betting their house on Bank Nifty. Yes, you can risk manage and put a stop loss to your trade 🛑
But unfortunately, there is no stop loss to the financial stress and the impact on your cardiac health from active day trading. Every time a trade goes against your position, knowingly or unknowingly you are under stress and this can affect your health
The question you need to ask yourself is – is it worth it? Yes, the capital market is a serious source of wealth creation and everyone in this day and age should have exposure to markets. But there are many ways to do this smartly without taking on stress
For example- make long term investments via mutual fund, outsource your stress to a professional who knows how to deal with this. It does not make any difference if you trade and generate 10% or if a fund manager does it for you
Or if the stock market is what rocks your boat and you feel ‘compelled’ to trade, at least stick to positional trades where you have the luxury of time to think and plan without taking on stress
Or if you like trading actively, at least make sure you have the ability to realise when to cut and get out. Your time is probably better spent in doing things where you have an edge
So before you decide to take a plunge into trading actively, just don’t think about the monetary risk factors, think about the financial stress and the long term impact on your well-being. Stay healthy, stay stress-free.
Source Twitter : nithin kamth post
Explained by karthik rangappa
(author : Zerodhavasity)
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