Over 70% of Intraday Equity Traders Are In Losses!
SEBI study reveals that over 70% of individual intraday traders in the equity cash segment lost money in the FY 2022-23.
As per them, more than 7 out of 10 intraday traders in the stock market incurred losses.
Shockingly, the study also highlighted a jump in the number of individuals trading intraday in the equity cash segment after the pandemic from 2018-2023 by 300%
SEBI analyzed the profit and loss trends for equity cash traders in the stock market across 2018-19, 2021-22, and 2022-23. This analysis compares the period before and after the pandemic.
The study was reviewed by experts from different fields, including academics, brokers, and stock market professionals.
It is based on a sample of individual clients from the top 10 stock brokers, representing about 86% of all individual traders in the equity cash segment for 2022-23.
Other Findings of the SEBI Study
- 1 in 3 equity traders in the stock market do intraday trading.
- Intraday trading surged 300% from FY 2018-19 to FY 2022-23.
- The percentage of young intraday traders (under 30) rose by 48% in FY 2022-23 from 18% in FY 2018-19
- 71% of intraday traders (7 out of 10 individual intraday equity traders) faced losses in FY 2022-23.
- 80% of high-frequency traders (who did more than 500 trades/year) are loss-makers. It means loss-makers traded more often than profitable traders. The average no. of trades by loss-makers was greater than the average number by profitable traders.
- 76% of younger stock traders (under 30) lost money in FY 2022-23, more than other age groups.
- Loss-makers spent an additional 57% of their losses on trading costs; while profitable traders spent 19%.
The study aims to increase awareness of the risks associated with intraday trading. It is different from the January 25, 2023 report on F&O trading by SEBI.
You can find the whole research and SEBI study here.
Bottom line
According to SEBI, Approx 90-95% of traders in the F&O segment are in losses, and now the recent report shows that over 70% of intraday equity (stock) traders are also losing money.
If you’re among those loss-making traders, it means you’re definitely doing something wrong.
Intraday trading isn’t the issue, but if you’re following these fake YouTube and Instagram gurus who lure you with a flashy luxurious lifestyle, cars, money, etc. and you’re hopping into trading without learning; 100% you’re likely to lose in the end.
Interestingly, the failure : success ratio (30%) is still way too greater than UPSC, CA, NEET, IIT, etc.
You need to focus on learning, mastering your trading psychology, and improving your trading skills.
Don’t hop into trading considering it as a “get-rich-quick-scheme” and by getting influenced by a flamboyant lifestyle that fake gurus showcase you.
If intraday trading doesn’t work for you, consider swing trading.
End of the day the goal is to make profits — money in, money out.
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