Why do so many retail traders lose money in F&O despite knowing technical analysis?
Most Indian traders trade options, which do not move in a straight line like stocks or indices. For example, the Nifty index can rise while a Call option falls in value—and even expires worthless.
Ultimately, technical analysis only helps you predict the price movement of the underlying stock or index; it cannot predict how the option contract itself will behave.
Option pricing has several components such as volatility, time to expiry, accelaration in prices etc. so most traders either get confused or worse work with just the textbook knowledge- which doesn’t work in real life.
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Because most retailers do trading on very short timeframe
Like they will check 5 minute candle and 15 minute candle
They will buy an option at 100, target 120, stop loss 90.
Guess what happens.