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Zerodha co-founder Nithin Kamath explained that over-trading and revenge trading are among the most common mistakes he has seen over his years as a trader and running a brokerage.
Kill Switch temporarily disables trading activity to prevent emotionally-driven decisions.(Photo Credit: X)
Many traders find themselves caught in a cycle of impulsive decisions in order to chase profits and that is why they react emotionally. This often leads to over-trading or revenge trading where one bad trade triggers a string of poor decisions.
To tackle this, Zerodha co-founder Nithin Kamath introduced a new tool: the Kill Switch. This feature temporarily disables trading activity to prevent emotionally-driven decisions. Kamath shared his thoughts on X (formerly Twitter) where he stressed that sometimes “the best trade is the one you don’t take.”
Zerodha Introduces Kill Switch
In his post, Kamath explained that over-trading and revenge trading are among the most common mistakes he has seen over his years as a trader and running a brokerage.
“The other common trading mistake I have seen over and over again in all my years of being a trader and running a brokerage is over-trading and revenge trading. This is why we launched Kill Switch. If you get the urge to keep trading, you can enable it, and you won’t be able to place trades for the rest of the day,” he wrote.
To show how useful is the Kill Switch, he shared a screenshot of an X post of a Zerodha user. The trader wrote: “Booked profit in 15 minutes. Tuned on Zerodha’s kill switch after that. Because my biggest enemy after a winning trade is me with overconfidence and a buy button. Thank you Zerodha for protecting me… from myself.” The screenshot revealed that the user had made over Rs 30,000 through options trading.
See The Post Here
The other common trading mistake I have seen over and over again in all my years of being a trader and running a brokerage is over-trading and revenge trading. Sometimes, the best trade is the one you don’t take.
This is why we launched Kill Switch. If you get the urge to keep… pic.twitter.com/yYNPecKNyB
— Nithin Kamath (@Nithin0dha) November 25, 2025
People Hail Nithin Kamath For Kill Switch
The introduction of Kill Switch in Zerodha received praises from social media users.
One user commented, “Honestly, the hardest part of trading isn’t the market… it’s fighting the version of myself that thinks one green candle means I’m the next Paul Tudor Jones. Kill Switch isn’t just a feature; it’s therapy for people who mistake momentum for destiny.”
Another wrote, “This will bring Zerodha’s revenue down. But loyalty will go through the roof.”
“Love this — discipline > hustle. Sometimes not trading is the best trade,” someone else said.
A person praised, “Excellent feature…a good trading system limits your downside, a great system limits you.”
“Handy feature. Also, people forget that not taking a trade is also a position,” a commenter pointed out.
“This is one of the most thoughtful tools built by Nithin Kamath. Kudos to your team,” read another comment.
What Is Kill Switch?
The Kill Switch is a tool that temporarily disables trading activity in selected segments to prevent new orders until the fixed cooldown period ends which is usually at midnight or the next trading day.
How To Activate Kill Switch
To activate the Kill Switch on platforms like Zerodha or Kotak Securities:
Log in to your trading account.
Go to the Profile or Account section.
Look for “Segments” or “Trader Controls” option.
Find the Kill Switch and click Manage or toggle switch next to the trading segments you want to disable such as F&O, equity or currency.
Confirm the action with the OTP sent to your registered email or mobile number.
Ensure open positions are squared off before activating the Kill Switch.
Disabled segments remain inactive for the day and automatically reset at midnight or the next trading day.
Steps To Avoid Over-Trading
In addition to tools like the Kill Switch, traders can follow some steps in order to control their urge to take frequent trades.
Review your trading plan, set daily loss limits, define maximum trades and write them visibly before market opens.
Practice 3–5 minutes of mindfulness or deep breathing to start trading calmly.
Only take trades that match your plan and avoid impulsive setups. In order to do so, you can schedule breaks every 60–90 minutes to reduce fatigue-driven impulsive trades.
A team of writers at News18.com bring you stories on what’s creating the buzz on the Internet while exploring science, cricket, tech, gender, Bollywood, and culture.
A team of writers at News18.com bring you stories on what’s creating the buzz on the Internet while exploring science, cricket, tech, gender, Bollywood, and culture.
Delhi, India, India
November 26, 2025, 14:38 IST
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