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Kindle Notes & Highlights
by
ABHISH B
Read between
May 8 - May 8, 2022
He realized that the overnight successes and get-rich-quick etc., happens only in movies and in real life; one has to grind hard to win.
Yeah this was a catchy line.
So, the most crucial thing towards success in life and especially in business is to manage the risk appropriately.
He wanted to create a brokerage firm that he had wished to get as a trader—a transparent, cheaper, and best broker.
He knew that without taking any bets, one could not win big in life.
The absence of Plan B will create lots of unnecessary stress and will lead to wrong decisions. This is the main reason behind the failure of most of the startups.
"Our focus while hiring is to analyze the candidate's integrity, work attitude and ability to learn fast rather than experience in the capital markets.
Not even a single rupee was spent on advertising, whether it be online or offline.
He firmly believed that trading and investing is not a gift you are born with but a skill developed over time.
"We wanted to be more Google-like than Yahoo-like," Nithin recalls
"In today's day and age, it's no more about the big beating the small – it's about the fast beating the slow," Nithin says.
"Despite over 6.5 crore people filing income taxes, only 50 lakh invested in the market.
"The key to investing is not to make money, but to avoid losing it, and that's the product philosophy," said Sridhar, CEO of Paytm.
So Nithin always says, "never invest more than what you can completely lose in the beginning."
“you should make sure that you don’t lose more than 1% of your trading capital on any trade.”
Stock prices tend to trend (go up or down) for long periods, and buying more as it goes down is a losing strategy in the short-term trade. It may work well in long-term investing but never do it in short-term trades.
If you decide to use leverage, make sure to use it sparingly and only when you are really confident about the trade. Even then, make sure to have that stop loss.”
The decision to trade full-time and earn a living out of it should be taken only when there is large enough trading capital, a source of regular, fixed income to cover your lifestyle.
"After doing a bunch of businesses, I've realized that chasing money doesn't guarantee you money. I think it's about doing the right things long enough; then money automatically follows you," he says.
His business ideas are kind of based on social responsibility rather than only on profit.
"You can't just be one physical type and play the game the same way. You have to learn what you are good at and put that to play. That's essentially what business is all about - find the good things you have in life and leverage them to grow the business".
but one of the habits he found common among the winners is discipline.
One must be an expert in their field to create a significant impact.
This line was an eye opener
He says: "I think luck won't hit you if you aren't doing everything else right."
Anticipating the regulatory hurdles early on will give you an edge against the competitors who would be caught napping.
The best lesson for all aspiring entrepreneurs from the journey of Zerodha is: find a problem that you are stupidly passionate about solving, build core competencies around it and then start executing the ideas without waiting for the perfect time.
