Meta Description: 95% traders lose money — here’s why you’re not the next Rakesh Jhunjhunwala, and probably just donating brokerage to Zerodha.
📌 At a Glance:
If you’re trading intraday and wondering why your P&L looks like a crypto rug-pull chart — it’s not because of the stars, it’s because of your strategy.
And here’s the not-so-fun fact:
95% of retail traders in F&O lost money in FY23, says SEBI.
And 90% of them made less than ₹1.1 lakh annually — that’s less than a Zomato delivery boy with surge pricing.
So unless you’re married to volatility, trading on caffeine, and live for stop-loss hits, welcome to the harsh reality of why most traders are statistically screwed.
🎰 1. The Casino Called “Trading Desk”
- Ever seen a casino where the gamblers win more than the house?
That’s the stock market — except you don’t even get free drinks. - Brokers win: Every time you buy/sell, they make money. You? Not so much.
- Platforms win: With your losses, they can sponsor cricket teams and IPL stadiums.
- Taxes win: 15% on short-term profits, but 100% tax on stupidity.
💡 And yet, retail traders still believe they’re different.
🧠 2. The Cognitive Bias Buffet
Your brain is your worst enemy. Here’s why:
| Bias | What You Do | Why It Screws You |
|---|---|---|
| Overconfidence Bias | “This breakout is 100% confirmed.” | You YOLO in, it fake-outs. |
| Recency Bias | “Last 3 trades were green.” | You size up. 4th trade wipes you out. |
| Confirmation Bias | “Twitter says this stock is bullish.” | You ignore all red flags. |
“Most traders don’t trade the market. They trade their ego.” – some dude on FinTwit, probably down 70%.
💸 3. No Edge, Just RSI + Reliance
- Everyone’s trading the same thing: RSI 14, MACD, 200 DMA.
- You know who else uses that? Every algo bot on Dalal Street… but with 0.0001s execution time.
- Retail trader: Hits buy on laptop with Wi-Fi from Airtel.
- Algo bot: Already sold it 1,000 times before your order hits.
Edge ≠ Indicator.
Edge = Data + Discipline + Risk Management + Probabilities.
You have YouTube Shorts.
🏦 4. Your Broker Loves You — You’re His SIP
Remember, brokers don’t trade. They enable you to lose money:
- For every ₹100 you gain, you might pay ₹20–₹30 in brokerage + STT + GST + stamp duty + other “who-even-knows” charges.
- You exit at profit = Broker smiles.
You exit at loss = Broker still smiles.
Brokers made ₹28,000 crore in FY23. You made… tears?
⚠️ 5. Trading is NOT Investing
Let’s be clear:
| Trait | Trading | Investing |
|---|---|---|
| Horizon | Minutes to Hours | Years to Decades |
| Based on | Price Patterns | Business Fundamentals |
| Risk | High AF | Manageable |
| Tax | 15% + Bracket | LTCG Benefit after 1 year |
- Trading is like playing Squid Game in the market.
- Investing is like building a house slowly — maybe ugly, but it stands.
🧨 6. Position Sizing? What’s That?
- Most traders go all in.
- They hear “Reliance will hit 4000!” — and dump their rent money into call options.
Result?
RIP margin, and then the dreaded margin call — and not the Netflix kind.
🧾 Pro traders risk 1–2% per trade.
You? 100% and dreams.
😭 7. Lack of Risk Management = Financial Suicide
- No stop loss.
- Averaging down like it’s an Olympic sport.
- Revenge trading because Tata Motors hit your SL?
Bro… it’s not the market. It’s you.
🚨 “Cut your losses short, let your profits run”
Most traders: “Cut profits fast, hold losses forever.”
📊 SEBI Data That’ll Crush Your Hopes
SEBI’s F&O Trader Report (FY23):
| Metric | Value |
|---|---|
| % of traders who lost money | 89% |
| Median loss per trader | ₹50,000 |
| Top 1% profit-makers | Took 51% of all gains |
| Bottom 90% | Earned < ₹1.1 lakh annually |
And yet, Insta is full of 22-year-olds flexing “₹1.2 Cr intraday gain” on demo accounts.
📉 8. Trading Courses = Modern Snake Oil
- “Join my mentorship, earn ₹5K per day!”
- “Learn options trading secrets in 3 days!”
- “Bank Nifty sniper entry hacks!”
These courses make more money than most of their students.
If the guy had a secret formula, why’s he teaching… not trading?
🚀 9. Survivorship Bias & Social Media Fakery
- You only see the winners posting gains.
- The 1,000 traders who blew up? Quiet as LIC agents in 2020.
Social Media Logic:
“He posted ₹5 lakh profit!”
Reality: He lost ₹10 lakh last week, posted the one green day.
✅ So… Is Trading Always Bad?
No. But it’s a profession, not a side hustle. Here’s what makes good traders rare:
- Deep understanding of risk and position sizing
- Iron discipline (read: no FOMO)
- Back-tested edge with large sample size
- Systems > Emotions
- Humility to accept losses
🧠 EduInvesting Take:
Retail trading is like attempting heart surgery after watching a reel.
You don’t have to avoid markets. Just know which game you’re playing.
Investing builds wealth. Trading builds Instagram reels (and anxiety).
You want to try trading? Great.
But start with:
- A fixed capital you can afford to lose
- No leverage
- Strict rules
- No Twitter tips
- And a backup plan (like a real job)
🎯 Final Verdict:
💀 95% fail because they never planned to succeed.
🎓 If you wouldn’t open a restaurant without learning how to cook,
then don’t open a trading terminal without learning how to lose.
🏷️ Tags:
trading vs investing, why traders lose money, SEBI trading report, intraday myths, options trading truth, retail trading failure, eduinvesting satire, stock market humor
