Retail traders stats

Hi, @nithin can you share stats about retail traders winning and losing percentage?
Can we trust YouTubers who post 15L, 50L gains in a day? Does really any of your clients make that much money?


I had shared this recently

Greed and the ill-conceived lure of quick money is the biggest enabler of trading activity in the markets. Those who trade constantly try finding ways to make more by increasing their trading capital. And those who don’t, lured by greed, are constantly seeking out someone to trade on their behalf or manage their money.

Like everything else in life, higher rewards when trading usually carries higher risk. An important fact that people ignore is that the risk of losing capital always accompanies any asset that earns you more than Government securities or bank FDs. There is no risk-free trading. From my experience in the markets, less than 1% of active traders make more than bank FD returns in the long run. While this 1% is minuscule, the odds of succeeding in trading are similar to those who attempt businesses.


By active traders you refer to retailers right ? I want to ask how do we evaluate who is succesfull and who is not , i mean is it 3,5 ,6 or 10 years of outperformances or the amount of capital one is managing or risk adjusted returns . At last what comprises of these 1% traders who make money , are they hedge funds , FPIs , prop books or i mean where does 99% of losers money go , just a tentative breakdown if you could give with your expereince.


I think if you can beat the FD returns by at least 3% for over 3 years, you can consider yourself successful.

When I say 1%, all our customers are retail. By the way most traders lose money in terms of transaction and impact cost. STT collected itself is Rs 10,000+ crores in India, add to this Stamp, Exchange, brokerage, etc.

Very active traders lose a lot of money to impact cost or in the bid-ask spread. Usually, the lower activity traders on a net basis benefit from this impact cost.

Check this post

Here is something startling—on an overall basis, active F&O and intraday equity traders lose more money to trading costs (STT, Stamp duty, and other charges) and impact cost (money lost due to the bid-ask spread), than actually to the markets. This is likely to be the same across all stock brokers