In September 2024, SEBI published a study of individual traders in equity futures and options. It found that about 93% of over one crore individual F&O traders incurred losses between FY22 and FY24, with average losses of around ₹2 lakh per person over the period, including transaction costs. Earlier studies had shown similar results.
These numbers are not meant to scare you away from the market. They are a reality check. If most people lose, doing what most people do is the surest way to join them. Here is why traders lose — and what the successful minority does differently.
Reason 1: Trading costs eat small edges
Every trade has costs: brokerage, STT, exchange charges, GST, stamp duty and slippage. For frequent intraday and options traders, these add up to a large share of capital each year. A strategy with a small edge can turn negative after costs.
What winners do: trade less, aim for larger moves relative to costs, and calculate costs before trading with the brokerage calculator.
Reason 2: Leverage magnifies mistakes
Futures and options let you control large positions with small capital. That feels attractive — until a normal move against you wipes out a big part of the account.
What winners do: size by risk, not by available margin. Read position sizing explained.
Reason 3: No tested edge
Many traders trade tips, gut feelings or random YouTube strategies. Without a tested method, results are random — and random minus costs is negative.
What winners do: write clear rules and test them. Use the strategy builder to backtest ideas and read how to backtest a trading strategy.
Reason 4: Option buying without understanding decay
Buying cheap out-of-the-money options feels like a lottery ticket with limited loss. But time decay (theta) works against buyers every day, and most such options expire worthless.
What winners do: understand Greeks and probabilities before trading options. See option Greeks explained and option buying vs option selling.
Reason 5: Poor risk management
No stop-loss, moving stops, averaging down and risking too much per trade. One or two bad trades erase months of small profits.
What winners do: follow strict risk management rules — small risk per trade, predefined stops and loss limits.
Reason 6: Emotions and overtrading
FOMO, revenge trading and the need for action lead to impulsive trades. See trading psychology mistakes and overtrading.
Reason 7: Unrealistic expectations
Expecting to double money every month leads to oversized bets. Even top professional funds are happy with steady annual returns.
What winners do: treat the first year as education, measure progress by discipline and expectancy, and grow size slowly.
Reason 8: Not keeping records
Without a journal, traders repeat the same mistakes for years.
What winners do: keep a detailed trading journal and review it weekly.
The habits of the successful minority
| Losing majority | Successful minority |
|---|---|
| Trades tips and hunches | Trades tested, written rules |
| Sizes by margin available | Sizes by risk (often 1% or less) |
| No or moving stops | Fixed stops decided before entry |
| Trades every day | Waits for high-quality setups |
| Ignores costs | Calculates costs and trades less |
| No records | Journals and reviews every trade |
| Expects quick riches | Expects slow, compounding progress |
Should you trade at all?
For many people, the best path is long-term investing through diversified funds and SIPs, with trading as a skill learned slowly and with small money. Try the SIP backtest to see how disciplined investing in real funds has behaved.
If you do want to trade, learn properly first. Our stock market course focuses on risk and process — not tips or promises.
Key takeaways
- SEBI's study shows the vast majority of individual F&O traders lose money.
- Costs, leverage, untested methods, option decay, poor risk control and emotions are the main reasons.
- Successful traders test rules, size by risk, use stops, trade less and keep records.
- Long-term investing is a valid — often better — path for many people.
Frequently asked questions
What percentage of traders lose money in India?
SEBI's 2024 study found about 93% of individual equity F&O traders lost money between FY22 and FY24.
Is intraday trading also loss-making for most people?
SEBI studies of intraday cash-segment traders have also found that a large majority lost money, especially frequent traders.
Can I become a profitable trader?
Some people do, usually after a long learning period with strict risk management, tested rules and realistic expectations.
What is the safest way to start?
Start with investing, learn trading with paper trades and very small size, and focus on risk management first.
BullishBrush শুধুমাত্র শেয়ার বাজারের শিক্ষা দেয়। আমরা SEBI-রেজিস্টার্ড ইনভেস্টমেন্ট অ্যাডভাইজার বা রিসার্চ অ্যানালিস্ট নই এবং কোনো কেনা-বেচার পরামর্শ বা টিপস দিই না। শেয়ার বাজারে বিনিয়োগ বাজারের ঝুঁকির অধীন; বিনিয়োগের আগে সব নথি মনোযোগ দিয়ে পড়ুন। অতীতের ফলাফল ভবিষ্যতের নিশ্চয়তা নয়।