Sebi study has revealed that 80% of individual investors in the equity cash segment incurred losses in FY23, particularly those with over 500 trades annually.
Approximately one-third of individuals trading in the equity cash segment engage in intraday trading.
The proportion of young intraday traders (aged under 30 years) increased significantly to 48% in FY 2022-23, up from 18% in FY 2018-19.
The proportion of individuals who incurred losses rose to 80% among those with very frequent trading activity (more than 500 trades per year).
Younger traders (under 30 years) experienced a higher rate of losses, with 76% being loss-makers in FY 2022-23, compared to other age groups.
Loss-makers executed a greater number of trades on average compared to those who made profits.
In FY 2022-23, loss-makers not only faced trading losses but also incurred an additional 57% of those losses in trading costs, whereas profit-makers spent 19% of their trading profits on trading costs.
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