“It’s crazy that we live in a time where the entire global financial market can and will do whatever one person decides to do, depending on which side of the bed they wake up on,” Kamath said in a tweet on Wednesday.
“The only way to survive as a trader in this market is to have survival as the first goal, not to make money. When you’re out of position on both sides, and there’s very little you can do in a headline-driven market, the most logical thing to do is to trade with less capital, significantly reduce the risk in your account, and wait for where you can take more risk than actually get money-making opportunities. Uncertain, highly volatile environment,” the founder said. said
The domestic fear index India VIX has surged as much as 74% in a month due to the Iran-Israel/US war which is now in its fourth week. The war began on February 28 after an Israeli strike killed Iran’s Supreme Leader Ali Hosseini Khamenei and the country’s top leadership. There is no sign of a ceasefire yet.
India VIX is currently close to 24.62.
Live events
Indian markets will be closed for three sessions in the next seven days due to Sri Ram Navami (Thursday, March 26), Sri Mahavir Jayanti (Tuesday, March 31) and April 3 Good Friday.
“There are also 3 holidays in the next 7 days, which almost guarantees a news cycle that can change the markets either way. Even small positions overnight. Trading is also inherently a solitary activity. And when you get constant feedback in the form of profits and losses, it takes a psychological toll. This was true even when I traded actively,” says Kamath.
He advises investors to take a break and recharge to come back fresh. “So with the long weekend coming up, I can’t think of a better time to take a break, recharge and come back to the flashing red and green lights with a fresh mind,” Kamath said.
Frontline indices ended Wednesday with strong gains, registering their second positive close. Heading into a one-day break tomorrow, domestic markets have seen strong buying in two sessions. Supported by banks and financials, auto, IT and consumer stocks. The Nifty rose 394.05 points or 1.72% to settle at 23,306.45 while the BSE Sensex reclaimed the 75k mark to close at 75,273.45, up 1,205 points or 1.63%.
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