Why did 95 of Indian traders lose money?

As much as 95 per cent of day traders lose money in the market, it demands an investigation. Intraday trading is the most popular, yet data suggests that most intraday traders lose money.

How many traders lose money in India?

In this session, we will answer a very important question: Why do 95\% of the Indian traders fail? 95\% sounds like a pretty high number and sometimes people don’t believe it. So here, read this.. the CEO of Zerodha, Nitin Kamath, has publicly shared that over 1 year, over 99\% of the traders lose money, 0.99!!

Why do 95 traders fail?

The Number #1 reason why traders fail is that they have no strategy. A lot of traders don’t want to acknowledge this but the fact is they have no idea what they are doing. The reality is that these are not strategies; these are just technical setups and no one can consistently make money using these setups alone.

Why do Indian traders fail?

1- No Strategy The Number #1 reason why traders fail is that they have no strategy. Professional traders, on the other hand, use time-tested strategies that are based on the behaviour of the market and the market participants; something that gives them an edge over other traders.

Why do most people quit trading?

But that’s not all, the biggest reason day-traders lose money is the risk they take on. Day traders are more likely to make risky investments to reach for those higher potential returns, and as you can probably guess, high risk = high potential loss. You make a 15\% return in 1 year (which is a great return by the way!)

What percentage of intraday traders lose money in stock markets?

It is estimated that nearly 80-85\% of intraday traders end up losing money in the stock markets. Normally, 70\% of the intraday traders do not last beyond the first year and 90\% do not last beyond the third year. What is the reason for this phenomenon and why do intraday traders lose money so consistently?

What are the common mistakes that intraday traders commit?

Simple mistakes that intraday traders commit include; averaging your positions, trying to outsmart the market, overtrading to recover losses, focusing too much on hot tips etc have created many Indian stock market loss stories. Interestingly, 90\% of the intraday traders are losing money in intraday trading.

Can I trade intraday without a stop loss and profit target?

You cannot enter an intraday position without a pre-defined stop loss and profit target. Ensure that the risk-return is favourable to you in the long run. But above all, trading is all about discipline.

How to manage losses in trading?

You need to put limits on your maximum loss at various levels. Each trade must be accompanied by a stop loss. You must set limits for losses for every trading day. If the losses happen in the first hour, have the discipline to shut your trading terminal for the rest of the day.