From FOMO to lack of discipline: 5 behavioural traits that might affect your investment returns
Live MintWhen it comes to money, be it spending or investing, most individuals like to think that it’s return which drives behaviour, you choose where you spend or invest based on what you get in return. In FY 22 9 out of 10 individual traders made losses on average anywhere between Rs 1.1 lakh to Rs 1.25 lakh. There are 42.4 lakh individual traders in index options with 89% making losses and nearly 21 lakh individual traders in stock options with 82% making losses. Here's why are individuals scrambling to lose money and know what behaviour traits lead them: Maximum behaviour minimum numbers Most of us are more inclined to negotiate down the price of one kilogram of potatoes which you know the vendor is selling at least 10% above average cost, but never try to do the same with chilli potatoes that the fine dining restaurant is selling at a ridiculously above average price. Nithin Kamath, founder and CEO of Zerodha Pvt Ltd, India’s top equity broker, warned individual traders in July 2021, against the perils of option buying.
History of this topic
Overconfidence leading to F&O losses for retail investors, says Sebi chief
India Today
F&O gamble: 5 reasons why options trading is a losing game for retail traders
India Today
Only 1 out of 10 F&O traders made profit in FY22; average loss stood at ₹1.25 lakh
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