Staggering Losses Among Young Intra-Day Traders in FY23

A Sebi study reveals that 71% of individual intraday traders in the equity cash segment experienced losses in FY23, with younger traders being particularly impacted. Despite an increase of over 300% in participants since 2018-19, loss-makers outnumber profit-makers, raising concerns about the risks involved in intraday trading.

A recent study conducted by market regulator Sebi revealed that 71% of individual intraday traders in the equity cash segment incurred losses during the financial year 2022-23. The report, disclosed on Wednesday, also highlighted a significant rise of over 300% in the number of individuals engaging in intraday trading compared to 2018-19.

Notably, the average number of trades executed by loss-making traders was higher than that of the profit-making traders. The study also underscored a substantial rise in young traders, under the age of 30, participating in the market.

The Sebi study, which compared trends from FY2018-19, FY2021-22, and FY2022-23, found that the proportion of younger intraday traders soared to 48% in 2022-23 from 18% in 2018-19. Alarmingly, 76% of these younger traders reported losses. Sebi aims to use this data to raise awareness about the risks of intraday trading.