My last article was about the SEBI study that revealed over 70% of intraday traders were in the red and suffered losses in 2023.
Similarly, SEBI published a report in FY22 that showed that 89% of F&O traders were in losses, with an average loss of ₹1.1 lakh. Additionally, 90% of active traders incurred average losses of ₹1.25 lakh during the same period.
Loss makers registered a net trading loss of close to ₹50,000 in FY22.
But the latest report of SEBI on F&O trading is even more shocking. This is not at all good news for the F&O traders.
However, as a responsible trader and blogger, it’s my duty to present the truth to you and spread as much awareness as possible within our trading community.
The Shocking Latest Report of SEBI on F&O Trading (FY22-24)
SEBI’s Latest report reveals that: 93% of F&O Traders are Losing Money for FY22-24, up 4% from the previous report. That means only 7 out of every 100 traders are making profits!
This shows that the number of traders losing money in the F&O segment has increased by 4%.
The report highlights that around 1.1 crore traders lost a total of ₹1.8 lakh crore over just three years.
Individual traders lost an average of ₹1.60 lakh during this period. For those who incurred losses, the average loss was about ₹2 lakh, while profit-makers achieved an average profit of ₹3 lakh each.
This reflects an increase in losses compared to the previous report, where the average losses were lower.
The current data reveals a troubling trend in the F&O segment, as more F&O traders are experiencing financial losses.
If this trend continues, traders may face even greater financial difficulties, emphasizing the need for better trading education, knowledge, and risk management strategies.
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Bottom Line
The latest report of SEBI on F&O trading is a serious warning for those people who see trading as a jackpot and a get-rich-quick scheme, and jump straight into F&O trading with the hope of doubling their money overnight.
The F&O segment was originally introduced as a “hedging instrument” to manage risk, not to make quick profits.
But unfortunately, today’s so-called fake gurus and traders have turned it into gambling. Instead of using it for hedging, it’s now being used purely for speculation.
Futures and Options (F&O) is considered the most challenging segment of trading and is strictly not recommended for beginners.
Since 93% of people are losing money, these fake gurus know that where people lose the most, more new “victims” will keep coming (demand & supply).
Also, Human psychology drives most traders to continue trading in an attempt to recover their losses.
So these so-called gurus are just taking undue advantage of your desperation and exploiting you.
I don’t trade in the F&O segment, so I won’t say much about it. The goal of this article is to make you aware, but the choice of which segment to trade in is entirely yours.
I recommend staying away from F&O and focusing on stocks i.e. equity trading. If intraday trading doesn’t work for you, consider swing trading.
In your early years, focus on learning and mastering the process. Trading is a skill-based profession. Invest in yourself and expand your trading knowledge, as this will give you the best returns in this. Invest in trading books and guides.
Trading doesn’t only mean F&O. Ultimately, it’s all about making money and profits, no matter whichever segment you choose.
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