Did you know that more than 70% of intraday traders in india are losing money in the cash segment? And that most of them are under 30 years of age?
SEBI's latest report reveals these shocking trends in the stock market. In its report dated July 24,
The market regulator has revealed that in the last financial year, 71% of intraday traders in the cash segment of the stock market lost money.
And here's the kicker – 76% of these unfortunate traders were under 30 years old.
This study covers periods before and after Covid-19, in order to comparatively analyse the trends from both phases. It shows that after Covid-19, india has witnessed a massive surge in new demat accounts. This trend is also reflected in market levels –
On March 23, 2020, a day before the indian government announced a nationwide lockdown, the sensex tanked to an intraday low of 25,880. Since then, in a period of less than four years, it has skyrocketed past 80,000. This bull run has lured many young people into the market, creating a trap for them.
And a quick look at the numbers from the sebi report makes it clearer -- the number of intraday traders in the cash segment tripled between Financial Year 2019 and Financial Year 2023.
Back in FY19, only 18% of intraday traders were under 30. Fast forward to FY23, and that number has surged to 48%.
Also, participation from Tier-1, Tier-2, and Tier-3 cities increased three-fold, five-fold, and ten-fold respectively during this period.
Now, all these numbers have regulators and policymakers concerned. In fact, recently, SEBI Chief Madhabi Puri Buch talked about the unexpected surge in futures and options trading volumes and the associated losses, particularly among young investors.
As a response to these worries, FinanceMminister Nirmala Sitharaman increased the Securities Transaction Tax (STT) on F&O trading, trying to curb the heavy trading frenzy.
So, if you're feeling tempted by the market's all-time highs and thinking you can strike it rich with intraday trading, think again. Most young traders are getting caught in this trap. Be cautious and make informed decisions before diving into any trade. That's all for today, folks!
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