“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 in a tweet on Wednesday.
“The only way to survive as a trader in this market is to make survival the first goal, not making money. When you’re getting whipsawed out of positions on both sides, and there’s very little you can do in a headline-driven market, 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, rather than taking undue risk in a highly uncertain, highly volatile environment,” the founder said.
Domestic fear index India VIX has surged by a whopping 74% over a month, triggered by the ongoing Iran-Israel/US war which is now into its fourth week. The war started on February 28 after Iran‘s Supreme Leader Ali Hosseini Khamenei along with the country’s top leadership was killed in an Israel strike. There is yet no sign of truce.
India VIX is currently hovering near 24.62.
Indian markets will be closed in three sessions over the next seven days on account of Shri Ram Navami (Thursday, March 26), Shri Mahavir Jayanti (Tuesday, March 31) and April 3 for Good Friday.
“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. 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. This was true even when I was actively trading,” Kamath said.He has advised investors to take a break and get recharged to come back fresh. “So with a long weekend coming up, I can’t think of a better time to take a break, recharge, and come back to the blinking red and green lights with a fresh mind,” Kamath said.
Frontline indices ended Wednesday with strong gains, recording their second positive closing. The domestic markets have seen strong buying action over two sessions as they go on a day’s break tomorrow. Aided by banks & financials, auto, IT and consumer stocks. Nifty settled at 23,306.45, surging by 394.05 points or 1.72% while the BSE Sensex reclaimed 75k mark to close at 75,273.45, rising by 1,205 points or 1.63%.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)