SEBI Reveals: Why 93% of Equity F&O Traders Face Losses

"Myth #20: Tips to double my investment are like gambling. 'Aisi koi cheez/tip batao jisme paisa double ho jaaye.' Reality: Without knowledge, gambling in investments is a guaranteed loss."

Many traders enter the futures and options (F&O) market with big dreams, but the harsh reality laid out by SEBI's recent study is clear: 93% of traders in the equity F&O segment experienced losses between FY22 and FY24. This is not a matter of luck; it's the outcome of uninformed decisions and a lack of strategy.

The Cold, Hard Facts

• 93% of individual traders lost money.
• The average loss per trader was ₹2 lakh.
• The top 3.5% of loss-makers lost an average of ₹28 lakh each.
• Only a small fraction of traders saw any real profits, and the number is shrinking year by year.

These numbers aren’t just statistics—they represent the reality for traders who dive into the market unprepared. The belief that one can “figure it out” along the way has proven to be an expensive gamble.

Why Do So Many Traders Fail?

Most traders enter the market with minimal understanding of how complex it really is. SEBI's data shows that many traders rely on tips and shortcuts, often ignoring essential concepts like risk management and technical analysis.

Here’s the truth: trading is not a game of chance. It requires education, strategy, and careful planning—elements that too many traders overlook.

The Secret to Avoiding Losses

If you're serious about trading and want to avoid becoming part of SEBI’s 93%, it’s time to rethink your approach. Many successful traders have one thing in common: they didn’t rely on tips—they relied on knowledge.

While most traders hesitate to invest in their education, those who do are often the ones who manage to stay afloat, or even thrive, in the market.

Changing Your Approach

It’s no coincidence that those who take the time to truly learn the intricacies of the market tend to perform better. The traders who invest in building their knowledge and skills are the ones who avoid becoming part of the 93% statistic.

There are numerous platforms available that offer the right tools to help you succeed, and it's worth seeking them out to gain a better understanding of how to navigate the market properly.

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For more insights, check out the SEBI study or refer to the infographic above.