A recent study by Securities and Exchange Board of India found that around 70% of individual traders who engaged in intraday trading in the equity cash segment incurred losses during fiscal 2023. This finding comes as intraday trading among individual investors has surged, with a notable increase of over 300% compared to FY19.
The study further found that young traders under 30 years of age made up 48% of intraday traders, up from 18% previously. Notably, 71% of individual intraday traders experienced loss, and this figure rose to 80% among those who traded very frequently (more than 500 times a year).
Younger traders were particularly affected, with 76% facing loss. Traders who lost money tended to make more trades on average, and they incurred additional costs equivalent to 57% of their loss, while profitable traders spent 19% of their profits on trading costs during the year.
The study compared trading patterns before and after the Covid-19 pandemic, providing insights into how market dynamics and trader behaviors have evolved during this period.
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