Zerodha CEO Nithin Kamath Urges Investors To Take A Break From Investing - Know Why

Amid broad-based selloffs on D-street, Zerodha CEO, Nithin Kamath urged investors to consider taking a break from trading. Notably, there are only four trading days in the current week and the upcoming week as D-street will remain closed on April 14 and April 18 on account of Dr Bhimrao Ambedkar Jayanti and Good Friday.

Given the truncated trading weeks, the Zerodha founder advised investors to take a break and recharge in a post on social media platform X. He added that investors would need the rest amid the uncertainty seen in the stock market.

“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 said.

The Indian stock market left many investors unhappy on April 9 as the Reserve Bank of India’s rate cut failed to cheer the markets. The Sensex ended lower at 73,847.15 levels, down by 379.93 points or 0.51 per cent, the Nifty also ended lower by 136.7 points or 0.61 per cent at 22,399.15.

Kamath quoted Zerodha Varsity the company’s investor education platform and added a passage from ‘Innerworth’. Kamath also wrote in his post that to make profits via trade, investors need to monitor their own mood and not just the mood of the market. He added that in some situations, it is ideal to wait for the situation to change.

"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,” Kamath’s post said.

He added that by staying out of the markets, investors can survive to trade another day when the market conditions are normal.

“Don’t make the mistake of thinking you should trade even in these potentially debilitating conditions. 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," the post read.

In a separate post, Kamath wrote about a pattern in which investors stay out of the market for many years together after a major downtrend or crash. He added that after 2008, many investors did not invest in the stock market for a long time following the historic crash.

“By the way, if markets fall sharply, investors might stay out of the market for years—just like they did after 2008,” Kamath said.

Kamath’s comments come amid rising uncertainty in the markets following macroeconomic developments such as Donald Trump’s tariff announcements. Notably, the headline indices have fallen over 15 per cent from their all-time high levels seen in September 2024, resulting in huge losses for many retail investors.