Bear market rallies are ferocious, warns Zerodha CEO Nithin Kamath

“While shorts make money faster compared to longs because markets tend to fall faster than they go up. But bounce backs like these after a fall makes it really hard to book profits on time or continue holding shorts,” Kamath, who runs India’s largest stock broking platform, tweeted.

Stating that trading is one of the toughest ways to make money, he said the kind of volatility seen in the last few months makes it even tougher.

“For most traders living in the social media bubble, it must seem like everyone except you is killing it trading the markets. FYI, it mostly ain’t real,” the billionaire fintech founder said.

Amid worries related to rising inflation, possibility of a recession, Russia-Ukraine war and rising interest rates, equity markets have been making wild swings in the last few weeks. In a pullback rally, the Sensex added nearly 1,400 points last week and another 433 points on Monday.

The recent bounce back in the equity market comes against the backdrop of softening of commodity prices. However, FIIs continue to sell relentlessly in the domestic market. So far this month, foreign investors have pulled out Rs 46,000 crore from equities taking the total outflow this year to Rs 2.13 lakh crore.

As a result, the Nifty is down a little less than 9 per cent year-to-date. When compared to other emerging markets, the Indian market has, however, performed relatively better.

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