look news india
Since the Corona epidemic, the number of retail or individual investors in the market is constantly increasing due to the strong boom in the global markets as well as the Indian stock market. According to the data of the National Stock Exchange, about 9.5 crore retail investors are registered in the Indian market, who own 10 percent of the 2500 listed companies of the country's stock market i.e. Rs 36 lakh crore. However, unlike investors, the craze of intra-day (settlement of trades on the same trading day) for quick profits is also increasing. According to a study released by SEBI on Wednesday, the number of retail intra-day traders in the country has increased by 300 percent and 7 out of every 10 people are in loss. Second, the proportion of intra-day traders under the age of 30 is also increasing continuously.
SEBI has collected and studied data for three years 2018-19, 2021-22 and 2022-23 regarding intra-day trading in the cash segment. According to the data collected by SEBI from the top 10 brokers of the country, a total of 46.6 lakh retail customers were registered in the cash segment in the country's stock market in 2018-19, which has increased to 2.18 crores in 2022-23. The proportion of intra-day traders among these investors was 32 percent or 14.9 lakh in 2018-19, which has now increased to 68.9 lakh or 36 percent. That is, one out of every three people trading in the cash segment is an intra-day trader and the number of people doing inter-day trading has increased five times.
According to SEBI, intra-day traders below the age of 30 years were 18 percent in 2018-19, which has now tripled to 48 percent. Second, 81 percent of these young intraday traders suffer losses. SEBI says that more intraday traders are below the age of 40, their loss rate is higher and their average trade and turnover is higher, the number of traders losing gambling doubles.
The figures of SEBI's study are shocking in every way. SEBI says that along with the number of people doing intra-day trading, the number of people incurring losses or losing money is also increasing. In the year 2018-19, 65 percent of intra-day traders were running at a loss, which has increased to 69 percent in 2021-22 and 71 percent in 2022-23. Secondly, the higher the turnover in intra-day, the greater the possibility of loss. 80 percent of the people doing the most intra-day trades have suffered losses. The younger the age of the person trading, the greater the possibility of losing. In 2022-23, 53 percent of people above the age of 60 suffered losses during intraday trading, while 81 percent of people below the age of 20 suffered losses.
As per SEBI findings, 76 per cent of intra-day traders who trade more than ₹1 crore annually report losses and their average loss in 2022-23 was ₹34,977.
In January 2023, SEBI also reported that nine out of 10 retail investors are incurring losses while trading futures and options. Both these reports show that the craze of trading or making quick money is very risky and the rate of loss is also high. The Economic Survey presented in Parliament on Monday also expressed concern over the increasing share of retail investors in the stock market.
There is loss even after doing intraday trading for three years
The study shows that despite doing only intraday for three consecutive years, despite suffering losses, no lessons are being learned from the experience. Even after trading continuously for three years, they suffered a loss of 54% of intra-day trading in 2022-23. The age of such an experienced trader is 30 to 40 years.
Similar findings are a warning signal for intraday traders
76% of the people who do intraday trading of more than Rs 1 crore per year have suffered losses. People who do intraday trading of more than Rs 1 crore per year have suffered an average loss of Rs 34,977 crore. Such a trader makes an average of 742 trades in a year.
Those who executed more than 500 trades on an average recorded an average loss of Rs 61,394.
Those who made more than 500 transactions worth more than Rs 1 crore in a year saw an average loss of Rs 75,443.
76% of people who do intra-day trading of more than Rs 1 crore in a year remain in loss.