A recent study by the Securities and Exchange Board of India has unveiled a surprising factor influencing trading performance: relationship status. The analysis of intraday trading in the equity cash segment has revealed significant differences between married and single traders, as well as between male and female traders.
The general trading trends as per the study highlighted a broader trend of significant losses among individual intraday traders in the equity cash segment. In the year-ended March 2023, 7 out of 10 individual intraday traders made losses. Despite this, there was a sharp surge of over 300% in the number of individuals participating in intraday trading in FY23 as compared to FY19.
These findings by SEBI offer valuable insights into the factors influencing trading performance and highlight the varying outcomes based on relationship status, gender, and age.
Married Traders Outperform Singles
The study found that married traders consistently outperformed their single counterparts in several key areas. During FY19, FY22, and FY23, the proportion of loss-makers was lower among married traders as compared to single traders. Specifically, in FY23, 75% of single traders were loss-makers, while only 67% of married traders incurred losses.
Moreover, married traders demonstrated a higher level of engagement and activity in the market, executing a significantly higher number of trades on average than single traders. This increased activity translated into a higher proportion of profit-makers among married traders across all three years examined.
Female Traders Outshine Males
Another critical aspect of SEBI's analysis was the comparison between male and female traders. The study revealed that female traders consistently had a higher proportion of profit-makers as compared to their male counterparts.
During FY23, male traders with an annual intraday turnover of more than Rs 1 crore incurred an average loss of Rs 38,570, while female traders incurred an average loss of Rs 22,153.
Despite their better performance, the proportion of female traders declined to 16% in fiscal 2023 from 20% in FY19, highlighting a potential area of concern for market diversity.
Age And Trading Performance
SEBI's study also shed light on the impact of age on trading performance. The analysis revealed that younger traders were more likely to incur losses as compared to their older counterparts.
In FY23, traders over the age of 60 had the lowest proportion of loss-makers (53%), while those under 20 years of age had the highest proportion of loss-makers (81%).
(With inputs from PTI)
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