'Survive to trade another day': Zerodha's Nithin Kamath urges caution in shaky market stretch

Zerodha co-founder Nithin Kamath has a clear message for traders: don’t force it when conditions are stacked against you.

“Trading profitably requires that you monitor the market moods and your psychological moods. When either one is not conducive to trading, it’s best to stand aside and wait for the situation to change. Don’t make the mistake of thinking you should trade even in these potentially debilitating conditions,” Kamath posted on X. 

“By staying out of the markets, you can survive to trade another day, when you’re in a peak performance mental state and the market conditions are optimal.”

With only four trading sessions in the next 10 days, Kamath believes now is the right time to hit pause. “Good time to follow this advice. Over the next 10 days, there are only 4 trading days. It’s not a bad idea to take a break from trading and recharge. Judging by what’s happening, you’re going to need it.”

Kamath also shared an article emphasizing how even well-tested trading methods can falter during volatile phases.

“Another good reason to stay out of the markets is when your method seems to lose it’s winning edge. No trading method works indefinitely. When market conditions change, even a ‘foolproof’ method can stop working,” the piece noted.

It warned that sticking with a failing strategy often worsens outcomes. “When a method stops working, it can really stop working. Your account balance will decline with each trade.”

The right response, it says, is not panic but a strategic reset. “Step back, look things over, and wait until conditions are just right before entering.”