Zerodha's Kamath stresses risk management in trading

Nikhil Kamath, Co-founder of Zerodha, emphasizes the importance of risk management in trading, especially during volatile market conditions. He shares insights from legendary trader Jerry Parker, who stresses cutting positions quickly during drawdowns. Parker advises traders to reduce their positions by double the percentage of their losses. He highlights common mistakes, such as over-trading and not adhering to trading systems, which can lead to significant losses. Kamath reinforces that successful traders maintain discipline and control their emotions. He encourages both novice and experienced traders to focus on risk management and trust their trading systems.