Youth at Risk: SEBI Warns of Massive Intraday Losses in Stock Market

Intraday Trading

Over the past few years, there has been an increasing trend among Indians to invest in the stock market. People are attracted to stock market due to better returns compared to other investment options. But, not every person is making money from here.

Many people are investing their hard earned money here. However, the market statistics are scaring the investors. Most investors, especially small investors, face losses in the stock market even if they invest in the cash segment instead of the derivative segment.

Loss of many investors in stock market

A recent report by market regulator SEBI showed that 7 out of every 10 investors who traded intraday in the cash segment suffered losses in the 2022-23 financial year ending March 2023.

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This means that 70 percent of the investors who traded intraday in the cash segment lost. This shows that most investors lose money in the market.

The number of investors increased by 4 times

A SEBI report shows that as the number of investors in the market is increasing, the number of individual investors trading intraday is also increasing.

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According to the report, the number of investors doing intraday trades in the equity cash segment has increased by over 300 percent from FY 2018-19 to FY 2022-23. In the cash segment, one out of every three investors participated in intraday trade.

Young people are suffering the most

According to the latest report, like F&O, most of the young investors are also participating in intraday. According to the report, 76 percent of the investors who lost in the intraday segment are below 30 years of age.

From 2018-19 to 2022-23 financial year, the number of young investors (below 30 years of age) trading intraday in the stock market has increased from 18 percent to 48 percent.

The situation in F&O is also bad

Earlier, SEBI released a report on traders in futures and options some time ago. In it, Sebi had said that more than 90 per cent of retail investors in the derivatives segment of the market, i.e. futures and options, faced losses. SEBI advises investors to stay away from futures and options.

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