I must appreciate Sachin for the way he is addressing the fears and concerns of traders like us. Traders contribute to the bulk of the revenue for any trading firm and it becomes very difficult to please this segment since 90% of all traders loose money in their first 3 years. Very few traders take responsibility for a bad trade and normally likes to blame the service providers for their misfortune. Thankfully, Zerodha scores very high in speed of execution and cost of execution front, forcing the trader to take responsibly for his own actions.
I have been monitoring the progress of this thread and i feel Zerodha team is on the right track. I think its time they start their "educating the trader on how to trade" segment. They are proving to be the most promising trader friendly facilitator (not a broker) and most of their customer needs lessons on capital preservation, risk management, trader psychology and trade management.
After all, a trader will be able to give business every day if and only if he has enough (financial and emotional) capital to trade another day. SO it is in Zerodha's interest if their customers are profitable. Hopefully some of us will be able to take benefit of their initiative and help ourselves become profitable.
Again, thanks to Sachin and his zerodha team, for raising the bar for broking firms in India, our expectations from them keeps growing.
All the best...!
Hi All,
I wanted Nithin to answer this query, and this is what he replied to what linkon7 had posted.....
Thanks Linkon for your words, Traderji has given us an amazing platform to bounce our ideas of active traders in the market. Wonder why no one has ever done it before... Anyways, I personally am making note on every single feedback being posted and we are hoping to be most customer friendly trade facilitator in the next 3 months.
..All our clients would know where to reach me personally, would love to get all feedbacks on all that can be improved with Zerodha...
I have been associated with capital markets for almost 13 years( most of it as a professional trader)... Over these years, I switched brokers many number of times, took a sub-broking license, managed many portfolios and got to interact with all kinds of people involved in the capital markets.
The conclusion I came to was that, most of the people are really cold towards what happens to their clients.
When a new client goes to a broker with a margin cheque, the RM is given a target of making atleast 50% of that as brokerage...
Tips are decided over drinks by big broking companies to meet the monthly brokerage targets...
Products are offered to client without keeping his interest in mind... and so many other things that all of you must already be aware of...
When the idea of Zerodha came through, it was to breakaway from all the typical broking firms(not just in price, but also in the way we support)...
As Sachin had put it in a post before, trading is a battle, every day we battle over our trading systems, fear and greed. Reduced cost helps your trading system become more profitable, but that's not all there is to it...
Today I receive mails from a lot of people saying they are for the first time able to make money of the markets. But what I have realized is that they make up for only 10% of our active traders.
Trading on Zerodha is , like having a ferrari to compete in a race where everyone else is driving a ford. There is no point of having a ferrari if you don't know how to use it..
We are trying to figure out ways we can be of help for traders who want help on their trading. Thing about trading is that there is no one right way of making money, people who claim that they know are just fooling themselves.
We will definitely not get into the business of giving tips, tips are what really hurts people in the stock markets. People don't want to accept it, but it is like when a kids mother does his/her homework in school, helps no one...
We also don't want to get into making presentations on the same boring indicators that every other book in the market carries.
We are working on a very interesting trading system to help all those who need it...
Also, Trading like music is god gifted. Not everyone can be good traders, it is very important to have a stop loss on every trade of yours and on TRADING itself. Not something that your typical broker would do, but we are contemplation on having a f&o rehabilitation center for people who accept that they are addicted to it even if they know they can't make money of it.
We men have big egos and don't want to accept defeat. But a lot of times in life it is very important to know when to retreat...
I have gotten calls already from a lot of big brokers trying to figure out why we are trying to spoil the market. But what I can tell you all is that online broking can be done this way and can be very profitable. I was watching the movie Rocket Singh the other day and I realized that we are doing something very similar today with stock broking...
We have just started, I hope all of you will spread our word, we will over the next year take all the feedback and try our best to make Zerodha the best place for traders(in price and service)...
Do drop by our office whenever you are in Bangalore,
Wish you all a very merry christmas and a happy & prosperous new year..
Nithin