Zerodha's founder Nithin Kamath has given a statement on the launch of a new YouTube channel - Zing - to educate people about finance and investing. While sharing the link, the first video is on de-influencing. He further added that Zerodha has spent a significant amount of time and effort to educate people about finance right from day one.
Debating whether all the content the platform was publishing appealed to younger audiences, Nithin stated, "Since video was becoming the dominant way people consumed information, we also launched Varsity videos." He further added, "We're launching a new YouTube channel called Zing! by Zerodha where we make finance a little more fun. The first video is on De-influencing."
The first video has been uploaded wherein it talks about penny stocks and why traders avoid buying them. "In true deinfluencing style, we'll talk about the risks. The actual risks because nobody else talks about it," the video description reads.
Liquidity, and chances of manipulation in buying penny stocks is the highlight of the videos as two major risks. "The problem is not the price of the stocks, the problem is that there are no traders - this is a liquidity issue; the second issue is that a lot of these companies are fly-by-night operations (sometimes promoters are shady and sometimes business models don't exist)," the video said.
Kamath also advised on shying away from risky bets and thinking of making quick money. He further added on a detailed LinkedIn post last year about how many are surprised at the fact that just 1% of active traders make more than bank fixed deposits over a 3 years time-frame.
Only a small % succeed as active trading is like running a business. The only aspect that is easy about trading is getting started with it. He also said that traders with an alternate source of income tend to do better or have higher odds of winning than those who rely only on trading for a living. "This is similar to how the businesses that are well-capitalized tend to do better than those that aren't."
Leading to more mistakes in trading would be gathering more pressure when it comes to generating profits on a daily or monthly basis. "So in a way, traders who also earn by talking or teaching trading have higher odds of winning. But don't trust every profitable screenshot that people share to find ways to make money from you," said Kamath.
