annual reminder for saving my brothers from financial ruin.
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Yeah seen this few times now. He seems to get angry periodically (news?), but we cannot do anything about it so he comes here.
I do think some kind of initial brakes must be there with leverage, because people are stupid with money. Somehow, it should be better drilled into people that there is risk in this and you can lose all money and more and most people lose.
If after that someone gambles, its his mistake alone. Same thing can happen in investing and in other forms too. A fool and his money …
Beyond that, i think i wrote this before as well - trading improves market efficiency and price discovery. If things are badly priced, investors will suffer too, only need to see how we can have problems with debt funds holding illiquid stuff in times of stress.
And not everything has to have some value for you specifically. For me, religious structures and economy have zero value, astrologers have zero value, AYUSH has zero value or even negative etc etc etc. Different people will have different values for some things, you don’t stop just because you don’t like it.
No interest in arguing further.
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The answer is simple just give an exam if you want to trade f&o. This gets rid of the people who lose money without understanding the derivatives product. So now whoever loses money really lost because of bad analysis bad timing or whatever.
Your post doesn’t make sense just because some idiot lost money ban derivatives all together. There are people who get into big debt and never pay back. Should we stop loans as well? Derivatives trading needs to exist, it helps to hedge positions in the equity market but then you’ll say naked derivatives needs to be banned to which i’ll disagree again. See we need people who are willing to take that risk of naked positions to earn profits. These people create liquidity and better market effeciency. But I do support that retailers should be somehow made aware of what they are really trading in and how different it is from equity, it is not as simple as buy and sell or even worse people who do naked option buying all the time because it has “limited risk unlimited reward”. I think that concept of limited risk make people feel safe so even if they make a loss they don’t worry about it too much and keep doing mindless option buying and when they check their P&L statement that’s when it hits them. And I say this as a predominantly option buyer, i pretty much do option buying 70% of the time.
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Also instead of SEBI trying to “Save the retailers” and just make it worse for retailers, they should focus on big fund managers doing illegal things such as market spoofing. My friend is doing an internship at one pretty famous fund and he told me how common market spoofing is. If sebi really wants to “save the retailers” focus on this not “let’s increase margins/taxes so that these idiot poor retailers will be saved and have to die working their shit job under their egoistic boss” yay!
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Seriously!!! Get a life dude.
Also stop commenting on things you have absolutely no idea about. You have no idea as to the function of derivatives in the economy.
I have no plan to teach you here. Learn about it, then comment.
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By that logic we should stop giving loan to farmers as most of them commit suicide because they are unable to pay back the loans. Most of the businesses fail as well in long term. That is the rule of capitalism the system we have chosen for this country.
Is anyone making profits except the tutors or tips providers? If yes, is anyone in the tax bracket of 30% thru only fno earnings?
Bro, I am not a novice but tried multiple strategies in this market for a while. My experience with equities are positive but trading is mayhem. It’s not like u r not making money but at the end of month, your ledger is negative on Realized gains. Curious to know if you have been successful in taming the dragon for more than a year n pay your bills? That probably would motivate me I think…cuz my CA says in 8 yrs he has seen only losses for a FY
Even hedging doesn’t work. It protects from a major capital loss but it doesn’t guarantee profits. Even if it does, it’s peanuts. The only skill that works in market is predicting direction. Hedging helps in haywire movements. I am unable to tame this dragon. Looking for inspiration. But may not be banned. Rather ban those tips providers, they are the ones making crores by giving losses to others. And the tutors who never made profits from actual / real trading.
Console – Zerodha : Verified P&L from one of my accounts. I trade in multiple accounts [trades replicated across them] so that I don’t get into 30% slab. Trading in a single account would have gotten me into that bracket easily.
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Then there will be a surge of exam training , answer keys , fake exam attendee by YouTube scammer gurus 
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Have heard that there is corruption here too and one can pay to clear exams in some way. So there is that.
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But it is kind of a hassle when you think about it that all those hours perfecting ur strategy, enduring market moves for years and the govt can make all your years of hardwork unviable with just one move like they did with crypto.
Thanks for atleast trying to see my point how gullible people are when it comes to scams.
My only goal is to improve the financial health of regular folks by shielding them from scamsters.
My dad lost some money during harshad mehta years and became skeptical of markets in general and missed epic investments after that. So, it is not just the money lost during account blowout, people will lose opportunities after one bad experience.
I lost only 1% of my networth during trading, but lost 2 years of my valuable time until a friend pointed out how inefficient trading is to make money consistently.
Once I quit trading, my networth doubled, i picked up new skills, and close to starting my own business now.
I saved another friend (who is actually profitable trading and got great instincts), and convinced him to quit trading, his networth tripled in 3 years since then, he got 2 promotions since then.
My networth is in crores before i started trading, so the gains are not small.
And I am not even talking about people who lost money, fell for scams, lost their life savings.
To answer your questions, It is never proven that Retail traders contribute to price discovery (it is allways MMs who improve price discovery of stocks). retail option traders are mostly fodder for MMs/HFTs to make money filling market orders (remember the NSE colocation scam?), retailers allways lose money (like 95%, report published by zerodha), SEBI does a decent job when it comes to curbing scams in smallcap stocks but has lost control of youtube influencers selling courses and normies don’t even know how sophisticated these schemes are.
just open a demat a/c and you will be flooded with SMS’es giving tips for cash.
the whole retail trading is an abomination and should be banned for the sake of people’s peace of mind and country’s productivity.
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I’m sure there will always be some problem but atleast these problems can be managed instead of completely fing over retailers by increasing taxes or margin “To save to the poor idiot retailers”
You literally proved our point by your father example. He lost money during Harshad Mehta so he thought equities were risky bad etc. You/your friends lost money in F&O so you think it’s all a scam that f’s over retailers. Same thing
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This is not one story. this is just once instance of such story.
this forum alone is filled with such stories losing their networth. there are plenty of stories where people killed themselves.
99% of participants don’t have portfoilios, atleast get your data before making statements.
Keep the derivatives market open.
Allow people to buy/sell options only when they own underlying, I am fine with that. that is proper hedging and should be allowed.
Also, you can allow retail traders do options trading when their networth can take a hit.
For example, A retailer can trade 1 crore worth of risk exposure, if his/her networth is 4crorers.
If a rich person wants to lose money, who am i to stop them.
Don’t allow people with 2lacs in a/c trade 20lacs exposure.
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Why not let SEBI do both?
why this or that?
I don’t understand these arguments.
offers zero explanation to a full length post.
i dont think you can get a life even if you wanted to.