I just finished three episodes of - The Story of Disrupters: Zerodha on the Kuku fm app. I got really impressed recently by Nitin and Nikhil’s work when I saw the really great personality and sense of intelligence from a video on youtube where Nitin and Karthik Rangappa were explaining why they made this course named Zerodha. One of my school friends, Chirag, suggested doing this course Varsity (4). When I looked on the course page when I got back home, I saw that the way of teaching is very similar to a software development course i.e, Deep Dive Into Modern Web Development - Full Stack open (1). This second course is really the best course for anyone who wants to build some web development skills. I found this web development course during the last year of my college and decided to do it but couldn’t even start doing this in my day to day college time because I was too much involved in enjoying the recreational activities with friends and giving around 5% or less time to my college exams. So, as planned I finished my college classes and ended 8th sem at the college and it was so fun reading the first chapter of this course, which is so much elaborative why, what and how things are done in this course by Univ. of Helsinki. I really liked the overall structure of division of learning different parts i.e, frontend and backend in a number of systematized modules where each module covers significant information and latest information on each module, which is truly awesome in its nature. I was always a really slow learner, and I usually like to move to new problems only when the current problems are solved. I read this text in part 0 of full stack open course (1) which I quote - “Proceeding from part n to part n+1 is not Sensible before enough know-how of the topics in part n has been achieved. In pedagogic terms, the course uses Mastery Learning , and you are only intended to proceed to the next part after doing enough of the exercises of the previous part.” That didn’t make much of a sense to me at that time but I clicked the link of text “Mastery Learning”, and there I read it from wikipedia (2), which again I would like to quote the first paragraph here -
“Mastery learning” (or, as it was initially called, “learning for mastery”; also known as “mastery-based learning”) is an instructional strategy and educational philosophy, first formally proposed by Benjamin Bloom in 1968. Mastery learning maintains that students must achieve a level of mastery (e.g., 90% on a knowledge test) in prerequisite knowledge before moving forward to learn subsequent information. If a student does not achieve mastery on the test, they are given additional support in learning and reviewing the information and then tested again. This cycle continues until the learner accomplishes mastery, and they may then move on to the next stage.”
That’s such an awesome thing, very similar to what I already think about learning stuff - I was always a really slow learner, and I usually like to move to new problems only when the current problems are solved.
Just now from the KukuFm show of zerodha I learned about 97% of the people who enter the stock market leave the stock market within a year, and it is the 3% of the people who make money from 97% of the people, another green flag. Another saying from Nitin is that Stock Market is a patience tester.
Some more on zerodha and Nitin Kamath -
Founding and Background: Nithin Kamath, the founder of Zerodha, had a background in trading and investing. He did Bachelor’s in Engineering. He started as a retail trader and experienced firsthand the challenges and inefficiencies of the traditional brokerage system.
Sub-Broker and Portfolio Advisory Services: LEARN: A sub broker act as an agent between a broker and clients. Sub brokers study the market and manage the money of clients and they get a part of it from the stockbroker itself. Nitin worked for 12 brokerage firms one after one. (source: KukuFm) Even Nikhil was managing money for 20 clients while he was doing his night call center job. Nithin began his professional career as a sub-broker, partnering with Kamath Associates, which operated as a franchisee of Reliance Money. During this time (January 2004 to January 2010), he provided portfolio advisory services and engaged in proprietary trading. To know more about him browse this (3).
Inspiration for Zerodha: The inspiration for Zerodha came from Nithin’s own experiences and frustrations with the existing brokerage models. He envisioned a platform that would make trading and investing more accessible, affordable, and transparent for retail investors.
Introduction of Discount Brokerage: Zerodha pioneered the concept of discount brokerage in India. Unlike traditional brokerages that charged a percentage of the transaction value as brokerage, Zerodha adopted a flat fee structure. This significantly reduced the cost of trading, making it more affordable for small investors.
I created my zerodha account 20 September, 2023 and I started seeing the price candles of HDFC bank.
In HDFC charts, I see that there is somewhat around 1% to 3% at max of change in price in day trading but there is around 10% change if I see chart of 1D and look for profit patterns, there is a pattern of around 15 days of so I guess.
But how do I do the math of above i.e., 1% to 3% and the other 10% change in price? This is very simple, for e.g, if the price of stock is say 16,50 Rs, so this means we say 1% change (increase/decrease) in price when price of stock changes by 16.50 Rs. So, 1% change is ~16 Rs, 3% change is ~48 Rs and 10% change is 160 Rs, with this in mind one can easily have idea of % of change of stock price over a period of time say 10m or 1D candle stick charts.
This blog is mostly written using speech to text via “Voice In” chrome extension.
ctrl+lto activate extension. It was default shortcut but I had to clear the keyboard shortcut and re-make the same extension.