Zerodha CEO Nithin Kamath shares important knowledge on algo trading, says no easy way to consistently generate profits

Zerodha Founder & CEO Nithin Kamath took to Twitter to share some important things about algo trading, profitability and more. Nithin Kamath in a tweet said, "I keep hearing often that algo traders are super profitable, which by the way isn’t true. While an algo doesn't have emotions, it is only as good as the person who wrote it or controls (start & stop) it—the same person who's riddled with fear and greed. "

In another tweet, the Zerodha founder wrote, "Every algo like any trader, strategy or stock, has ups & downs. Just like impatient discretionary traders constantly try to time entry & exit, getting in late & out early, trade against trends, the same happens with algo traders trying to constantly find the best algo as well."

"There is “no easy" way to consistently generate profits by trading—be it discretionary, following "experts" or algos. The way to increase the odds of winning is by keeping fear & greed in check. For most people, trading only with money they can afford to lose is the way to go," Kamath concluded in 3rd tweet on algo trading.

I keep hearing often that algo traders are super profitable, which by the way isn’t true. While an algo doesn't have emotions, it is only as good as the person who wrote it or controls (start & stop) it—the same person who's riddled with fear and greed. 1/3

— Nithin Kamath (@Nithin0dha) October 14, 2021

There is “no easy" way to consistently generate profits by trading—be it discretionary, following "experts" or algos. The way to increase the odds of winning is by keeping fear & greed in check. For most people, trading only with money they can afford to lose is the way to go 3/3

— Nithin Kamath (@Nithin0dha) October 14, 2021

Earlier, on Oct 11, Kamath had tweeted, "Algo trading platforms are becoming popular of late, many of them claim to make you quick & easy money. We thought it's a good time to highlight the risks, regulations, difference b/w APIs & Algos, & the fact that we've no partnerships with these platforms."