A study by market regulator SEBI shows that 7 out of 10 individual intraday traders in the equity cash segment incurred losses in FY 2022-23. The study focused on the sharp increase of over 300 per cent in the number of individuals participating in intraday trading in the equity cash segment in 2022-23 as compared to FY 2018-19. According to Bhasha news, the special thing is that the average number of trades done by those in loss was more than those who made profits.
Young intraday traders under the age of 30 increased
According to the news, according to the study released by SEBI on Wednesday, the share of young intraday traders under the age of 30 has increased significantly during this period. SEBI has conducted a study to analyze the participation and profit and loss trends in intraday trading by individuals in the equity cash segment. It covered the period FY 2018-19, FY 2021-22 and FY 2022-23 to do a comparative analysis of the trends before and after the pandemic.
Nearly one in three people trades intraday
The study, based on a sample of individual clients of top-10 stock brokers, which accounts for about 86 per cent of the individual clients in the equity cash segment during 2022-23, has been peer-reviewed by a working group representing academics, brokers and market experts. In its study, SEBI found that nearly one in three individuals trading in the equity cash segment trades intraday. Also, the share of young intraday traders below the age of 30 has increased to 48 per cent in 2022-23 compared to 18 per cent in 2018-19.
71 percent incurred net losses
The study said that 7 out of 10 individual intraday traders or 71 per cent of the equity cash segment incurred net losses in FY 2022-23. Also, the proportion of losers increased to 80 per cent for traders with very frequent (more than 500 trades in a year) trading activity. Apart from trading losses, losers spent an additional 57 per cent of their trading losses as trading costs in 2022-23, while profit-makers spent 19 per cent of their trading profits as trading costs. Moreover, the percentage of losers was 76 per cent higher among young traders in 2022-23 compared to other age groups.
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