Does the urge to act take over? Zerodha’s ‘Kill Switch’ is a cure, says Nithin Kamath

If your urge to keep trading gets the better of you, Zerodha users have an escape route through the ‘Kill Switch’ feature, said founder and CEO Nithin Kamath, adding that traders are on Kite platform can enable the feature and no longer place bets for the rest of the day.Citing his experiences as a trader and broker platform owner, Kamath said one of the most common mistakes he sees is over-trading and revenge trading. He further said that the best trade in such situations is not to make any trades.

“The other common trading mistake I’ve seen over and over again in all my years of trading and brokering is over-trading and revenge trading. Sometimes the best trade is the one you don’t take,” Kamath said in a tweet.“This is why we launched Kill Switch. If you get the urge to keep trading, you can turn it on and you won’t be able to place any more trades for the rest of the day,” said the founder and CEO.

How to expand the segment on Kite

Zerodha users can use the ‘Kill Switch’ feature to disable a specific trading segment or take a trading pause. This feature is part of the nudge initiative, which aims to prevent traders from experiencing burnout due to excessive trading.1) Tap your user ID2) Tap profile

3) Tap Segments

4) Tap the toggle button for the appropriate segment and then tap ‘Continue’.

Also read: Zerodha staffer owns 3,100 shares – almost the entire NSE universe currently trading. This is what Nithin Kamath says

The segment will be deactivated within 5 minutes. Before you disable a segment, make sure you have no open orders or positions. After you disable a segment, you cannot enable it again until twelve hours later. The displayed segment re-enable time uses the 24-hour clock.

Here’s how to enable a segment

1) Visit console.zerodha.com/account/segment-activation.

2) Click the toggle switch for the appropriate segment and then click Continue.

3) Select Email or Mobile to receive the OTP on your registered email address or mobile number and click Continue.

4) Enter the OTP you received and click ‘Verify’.

Also read: Warning for IPO investors: Zerodha CEO Nithin Kamath notes how tax arbitrage by VC firms is driving valuations

Things to keep in mind

Once the GTT comes into effect and you disable the segment, your orders will be rejected. The same applies to shopping cart orders and SIPs that are activated. Even if you disable the segment, your demat account will remain open with Zerodha. Therefore, you will still be charged the Account Maintenance Charge (AMC).

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