Sebi released a detailed study on the P&L of individual traders in Futures & Options (F&O)
1) No of F&O traders zoomed - 7.1 lakh (FY19) to 45.2 lakh (FY22)
2) 89% made losses in FY 22. Avg loss of 1.1 lakh.
3)11% made profit. Avg of 1.5 lakh.
4) Top 1% traders account for 51% of net profit
Retail investors, who learn from YouTube, finfluencers or some random short courses and feel that they can make tonnes of money in F&O, need to read these statistics carefully.
There's just a miniscule percentage of people who are net positive in such trades at the end of the year. If you don't believe it and have done substantial such trades last year, total up the profit and losses of all such trades after accounting for brokerage and tax. You might be in for a shock.
For more insights, you can further read the report by googling it.
Wanna be on the right side of the market, then do not look further beyond our bank Nifty option tips as we Trade less but trade accurately.
If Only 10% or 1% traders make money, what are rest 90% doing..?
It's a Simple Equation.
If you don't have a gambling instinct & temptation to become rich fast,
You'll be in top 10% and eventually 1%
People lack discipline in Life itself & Trading is the Most difficult Profession to maintain, since it's new challenge everyday. It's upto you if you look at it as a challenge or Opportunity.
So, 90% of the People fall in category of
1)lacking discipline, no control over temptations
2) Gambling instinct
3) No systematic way or no Risk prioritised way of execution.
If you win over these,( which are not that hard really) you've chance to survive.
How you can improvee your odds of maing profit in stock market?
There are several ways to improve your odds of making a profit in the stock market, including:
Diversifying your portfolio: Diversifying your portfolio means investing in a variety of different stocks and asset classes, such as stocks, bonds, and real estate. This helps to spread your risk and reduce the impact of any individual stock's performance on your overall portfolio.
Doing your research: Before investing in a stock, it's important to research the company and its industry to understand its financial health, growth prospects, and potential risks. This can help you make more informed investment decisions and identify companies that are likely to perform well in the future.
Investing for the long-term: The stock market can be volatile in the short-term, but over the long-term, it tends to increase in value. Investing for the long-term can help you ride out the market's ups and downs and increase your chances of making a profit.
Monitoring your portfolio: It's important to regularly monitor your portfolio and make adjustments as necessary. This can help you identify underperforming stocks and make changes to your portfolio to improve its overall performance.
Consider using technical analysis, but also fundamental analysis: Technical analysis involves studying charts and historical data to identify patterns and trends that can indicate future performance. Fundamental analysis involves analyzing a company's financial health and growth prospects to determine if it's a good investment.
Managing your emotions: One of the biggest challenges in investing is managing your emotions. It's important to avoid making impulsive decisions based on short-term market fluctuations and instead focus on your long-term investment strategy.
It's important to remember that there's no surefire way to make a profit in the stock market and that investing always carries some level of risk. However, by following these strategies, you can increase your odds of making a profit and achieving your financial goals.