Module 12 Innerworth — Mind over markets

Chapter 1

Introducing ‘Innerworth – Mind over markets’

94

Most people start trading the markets lured by the prospect of making easy money. But anyone with experience will agree that the stock markets are probably the toughest place to make easy money. You need to have a decent strategy, and it needs to keep evolving over time to stay profitable over hundreds of trades. Each trade is a test of your emotions. You need to keep your greed, fear, and pride in check to ensure you make more on winning trades and lose less when you’re wrong, accommodate the very high trading & impact costs, and so on. 

As you’d imagine, only very few who start trading, succeed, just like people starting any other new business venture. To illustrate, for every successful restaurant around you, there are probably a hundred others who end up shutting down. Similarly,  for every consistently profitable trader, there are hundreds who go bust. What makes trading riskier is that it has a very low entry barrier. Anyone can get started trading, unlike setting up a business, a process that requires a lot of effort. 

Traders mostly focus on technicals, fundamentals, and other such metrics, or rely on advisors for the best buy/sell signals. But nothing can be called the “best” in this business. All strategies and advisors can lose money. The most important aspect of trading isn’t really when you buy or sell, but it is what you do before, during, and after. What happens to the price of the scrip you are trading, isn’t in your control, but how you react is! Very few people talk about this important aspect of trading — Psychology. The study of human mindset and how it functions in terms of identity, beliefs, and behaviors while actively trading the markets is as important as the fundamental and technical analysis, choice of advisor, etc.

Back when I traded actively, Marketwise, a brokerage firm based in the US ran a daily newsletter called “Innerworth — Mind over markets”; short articles written by the best in the industry focusing on trading psychology. Marketwise was sold in 2007 and with that, the Innerworth newsletter which started in 2002 also stopped. All the great content they created for the trading community was lost. These articles have personally helped me get through my drawdowns by helping me remain rational and not fearful, control my greed when I was doing well, and become a better trader. These articles are probably the best that I have read on trading psychology. Concise, easy-to-read, funny yet insightful, and driving home the point of the importance of having a mental edge when trading the markets. 

I’ve always wanted to make this content available to the Indian trader community. After several years of digging, we found David Nassar, Marketwise’s promoter, and were able to convince him to sell us the publishing rights for all the Innerworth content. 

After having waited for so many years, we are super thrilled to once again introduce Innerworth — Mind over Markets, a series of articles on trading psychology. We are starting off by publishing 50 articles under various categories in the Innerworth module on Varsity. We will keep adding to this.

Special Credits to Prateek from LearnApp (our learning partner) for helping us reach out to David and convincing him. 🙂 

 

Happy Trading,
Nithin Kamath

94 comments

  1. Ameet Mehta says:

    Bravo Nitin! Congrats to all of us!!

  2. Akash Kumar says:

    thank you sir, I will try to control my emotions !!!

  3. Bharat Baghel says:

    How to take right trade in USDINR option

  4. Vishwam Thaker says:

    What you guys are doing, will help generations of Indians to come. Kudos for being this awesome!!

  5. Manoj says:

    Brilliant! I always love to read and talk about such topics which others (advisors, brokers, anchors, etc.) don’t disclose (be it intentionally or unintentionally). Thanks for writing this Nithin. Would love to read it all.

    • Karthik Rangappa says:

      Happy reading, Manoj. By the way, these articles are from the Marketwise team, and not from any of us from Zerodha. We just have the publishing rights from Marketwise.

  6. santosh patidar says:

    Simple content anybody can understand. It is helping people to understand market related things. Happy to read. Thanks

  7. Akshay Bohra says:

    Thanks 🙂 happy to see such insightful things in the community

  8. Kousik says:

    If you want to beat the market….at first beat your psychology.

  9. Jagadish Kolanu says:

    Thanks a ton, Sir. Emotions form major part of trading including investment decisions, often people forget this main aspect. Sir, you and your team are doing a commendable job for enlighting millions of retails investors (traders also). Varsity is the gateway to financial freedom.

  10. Kushal says:

    Very thoughtful of you and your team.. This will immensely help the community. Thank you.

  11. chetna pandey says:

    thank you very much sir

  12. Abhijit Panda says:

    Appreciate the effort of the entire Zerodha team to bring both cutting edge tech and holistic trading tactics and making it accessible to retail investors like me

  13. MANOJ KUMAR TRIPATHI says:

    Thanks ji good luck

  14. Yash says:

    Thanks Nithin! And the learnapp bravos!
    This clearly demonstrates your continued commitment towards the trading community in India. Keep it up!

  15. Ashwin says:

    Hey Zerodha,
    Simply superb, you people are stars…..

  16. ismail ch says:

    i try my levelbest thanks

  17. Mrtn says:

    Very good to have identified to publish this core course element of retail trading

  18. N Sudhakar says:

    Thanking you for being part of our day to day lives.

  19. Jitendra Kumar Yadav says:

    Thanks a ton, Mr. Nitin…… Yod did marvelous work in investing field. Nobody was there in the past to teach Indian’s about investing and trading but you provided in-depth knowledge through your platform…..Thanks a lot Nitin bro….

  20. Jitendra Kumar Yadav says:

    Mr. Nitin…… You did marvelous work in investing field. Nobody was there in the past to teach Indian’s about investing and trading but you provided in-depth knowledge through your platform…..Thanks a lot Nitin bro….

  21. Pratip says:

    Thank you for share valuable information.i will be trying better in next trading day

  22. SARAVANA KUMAR YADHAV says:

    Thanks Nitin for thought of sharing.

    Seemingly very happy in seeing your notes and messages to Zerodha members, your kindness and intend to explore all ways to help and support the members of Zerodha.

    Kite is an seemless platform offered. Awesome to use it.

    “Help each other, Grow TOGETHER”

    Cheers,

    Saravana Kumar YADHAV.

  23. Mazid says:

    I like zirodha account

  24. Sagar Malhotra says:

    This is very exciting. Your focus on delivering the right content to the traders so they can make the decision by educating themselves is fantastic!

    Is there any way, you can create an email newsletter for these articles? Maybe once a day or once a week?

    • Karthik Rangappa says:

      Thanks for the suggestion, Sagar. I’m not sure about the email newsletter but are looking at having this delivered on the app on a weekly basis.

  25. SANTU DAS says:

    GOOD ,Thank you

  26. Umesh shetty says:

    Thank you

  27. manjunath C A says:

    Hi nitin,
    Could you please market profile charts / TPO charts in zerodha.. no other stock broker is providing those charts in India.. zerodha will have an edge if we have market profile charts.. please look into it.. thanks in advance..

  28. Praveen says:

    Hello,
    How do I access this content on Varsity app on android?

  29. Vijay r Joshi says:

    Thanks

  30. Amit Kumar says:

    Simply you’re dedicated to what you think.
    Nice spirit!! Man

  31. Abhinav Grover says:

    Great Nitin. I admire the work and your spirit to make trading easy and people educated about it.

  32. Govinda Chate says:

    As always your team rocks!!!! Concepts and trading psychology what I’m trying to overcome has been given in this context, very precise and practical, thanks for the education and making us good trader…I can proudly say we are becoming traders only because of ur quality education that too absolutely free..may god bless Zerodha!!!!

  33. VIVEK SHARMA says:

    Nice.. .. Keep it up.. ..

  34. Sagar mahajan says:

    Bravo Nitin. Lots of love. I have heard your story frm YouTube. Its very inspiring for retail investors and traders like us. Pleaae shareus more details how you increased your capital frm thousands to crores please it will teach us lot. Thnk you and lots of love

  35. homendra says:

    i just started trading from past october and yes…greed and fear goes hand in hand in trading ..i made a strategy everyday before trading..whenever i did well then greed comes in and forces the brain to take more trades which result in losing my profit then fear takes control of brain then losses more money…its happen lots of time with me..so stick to your plans is the key..control your brain..i am working on it…and thanks for this innerworth articles ..it will really help me to improve my trading …

  36. Amar says:

    Sir, please provide the PDF of this….

  37. Santosh Kodere says:

    Thank you Nithin..it is an utmost requirement.

  38. मिशनसिंह पटेल says:

    Just one word 💯Awesome.

  39. Narayan says:

    Awesome…Thank you so much for providing such a useful content.

  40. Umer says:

    If Zerodha has an IPO, I’ll be the first one to subscribe. Nithin, Karthik and the team are doing a great job in the markets as well as this gem of a website which has personally helped me learn a lot since I started my investing/trading journey 3 years ago.

    Keep it up guys!

  41. Shivram says:

    Glad to know that you bring such a valuable knowledge regarding trading phycology, looking forward to go through it.

  42. R V Kannan says:

    Good Mr. Nithin this shows you and your team’s dedication of the work which we all will involved.

    keep it up,

    special thanks to our Team leader.

  43. Rahee lochan says:

    Yours such efforts will surely help us to evolve into a seasoned traders.

  44. Jayant Bhuskade says:

    Thank you sir,for adding this information.we are blessful with varsity.

  45. Ehetesham says:

    There are many people who speak of this aspect of Investing and Trading. But none other Zerodha can put it so crisp and clear to the common people of India.

  46. PARVATI says:

    I come to know about market and investing since four years. But October 2018 I opened account in zerodha and took time to study almost 6months and i set my long-term investment and short-term trading plans. Since two months i am earning and become confident.
    I would like to confirm this equity investment, trading, market studies are with zerodha is new horizon in my life.
    Still psychology set ups i have to bring lots.
    I hope these articles definitely help me lot. No brokerage for delivery made us very thankful. One have good market knowledge middle income groups people also can see their life in this. Once again thank to Nitin Kamat for all this behalf of all women who like to find their future economic development and growth.

  47. Rajesh says:

    Good initiative, Team Zerodha. Thanks

  48. Ravi says:

    Can you please include these in the varsity app and also include all modules in varsity. It’s really convenient to read on that specially since it keeps track of our reading progress. Thanks!

  49. Imroz says:

    Hii
    In my varsity app its reglecting jus 4 modules n d fifth one showing as “coming soon”..bit confused..cn u plz help me out as how to access of d modules popping on google..thanx

  50. Sagar Jain says:

    Thanks for your efforts in bringing this on Varsity.

    The chapters are different from the articles on tradingqna, right?

    • Karthik Rangappa says:

      They are the same, Sagar. There are over 500+ articles, so going forward all of them will be made available here and not on Tradingqna.

  51. P K Mohan says:

    An excellent topic every trader must read to understand how our emotions take control of us during trading. Thanks to Zerodha team for publishing ‘ Innerworth — Mind over marets’

  52. Sagar Jain says:

    500+ articles. That’s a great treasure!
    So, I guess, under the same chapter, we find many related articles… correct?

  53. Sagar Jain says:

    500+ articles. That’s a great treasure!
    So, I guess, under the same chapter, we find many related articles… correct?

  54. Vikrant says:

    Thanks you Nithin.
    I hope, I shall get many aspects of psychology behind a good profitable trader after going through the material.
    Keep it up. 👍

  55. Abhishek Singh says:

    Seriously, what we have in this module is Wisdom which many in market are either fortunate to be not aware of or even more, if they don’t care ! An excellent piece of work, true and diligently written.

  56. Jithendra Kumar says:

    Tnx for publishing this Article

  57. Akshay Satpaise says:

    And another great initiative from Zerodha. Kudos to everyone @Zerodha.

  58. mandar joshi says:

    Appreciate Ur efforts nitin sir thank you

  59. Donald Pinto says:

    Superb Sir, Really appreciate your thoughtfulness !! Nothing but person with pure passion can only think like this!! Hats off to you!!

  60. Thandabani says:

    We are happy to part of zerodha.

  61. Chandrashekhar Shetty says:

    Well said Mr Nothing. Not sure how many of us follow the same while trading

  62. chandrashekhar Shetty says:

    Sorry Mr. Nithin spell check beat me in my previous message.

  63. Amol says:

    First of all I will thank Mr Nitin , his team & congratulate all retail traders …

    Here in this industry, all big players and their big brokers are busy to make retail people fool but Zerodha and associates are helping us in right way to make us knowledgeable.

    Thanks 0dha.

  64. Aniruddha Joshi says:

    Is pdf version available?
    When the further modules would be incorporated into the app.

    Thanks for your good work and best

  65. Avtar says:

    Lost today ₹23000 in IBULHSGFIN due to wrong judgement…but still hope is high for better trading in future 🧘🏻‍♂️

  66. Savithri k n says:

    I learnt trading &confidence to continue
    Only by Zerodha,for retailers helping allot.
    Thank you Nitin sir,👏🏼

  67. Krutarth Suthar says:

    Shoutout to Prateek sir! 😁

  68. Sandeep says:

    I m new use of zerodha dmate a/c so plz help me

  69. Suresh says:

    Thanks for sharing such a great knowledge with all of us. Thank you Nithin Kamath.

  70. Roshan Mishra says:

    Great! Excited to read all !!

    Thank you.

  71. Samar Vir Singh Raghava says:

    Commendable extra efforts you take

  72. Chaya Dudhmal says:

    Thanks a lot Mr. Nitin Kamath. Eager to read all the content !!

  73. Praveen says:

    Short, sweet, easily readable, much useful try to give these kind of articles in future too..

  74. Jayesh Khatri says:

    Great job sir I have read many times 80% psychology 20% Strategy.
    Thank you for sharing such a valuable information.

    Please do share more Articles on Psychology.

  75. J S MANN says:

    Hunnn.Realy fascinating, different and virtuous. One can now play the market with the sprit of a game.
    Atlength, publish it as book and give it to all ZERODHA investors.

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