Nithin Kamath stresses risk management in trading success

Zerodha CEO Nithin Kamath highlighted the importance of risk management for traders, especially during market downturns. He emphasized reducing positions quickly in response to losses and allowing profitable trades to continue. Kamath's comments follow a significant market decline, with the Nifty index experiencing five consecutive monthly drops. He shared insights from trader Jerry Parker, stressing the need to cut losses and let winners grow. He noted that successful traders often struggle with emotional responses to gains and losses. Kamath pointed out that over-trading and not adhering to trading systems are common mistakes that can lead to anxiety and poor decision-making.