“Buy low, sell high—how hard can it be?”
This illusion is why every second person now thinks they can get rich by staring at charts, following news, or blindly copying “gurus.” But if it were that simple, why isn’t everyone wealthy?
The Brutal Reality (Straight from SEBI)
- 95% of retail investors lose money in equities/F&O.
- Average loss: ₹1 lakh+ per trader (often life savings).
- Most “winners”? They barely beat FD returns—after years of stress.
Why Do People Keep Falling for This?
- The “5-Year Chart” Illusion
- “If I’d bought this stock in 2018, I’d be rich!”
- Reality: Back then, nobody wanted that stock. For every 10x winner, there were 100 failures.
- Picking winners requires analyzing fundamentals, leadership, industry trends—not luck.
2.F&O: The Quick-Ruin Trap
- Futures/options are designed for professionals, yet retail traders gamble like it’s a casino.
- SEBI’s warning: 9 out of 10 F&O traders lose money within a year.
3.The “Part-Time Investor” Fantasy
- Trading isn’t a side hustle. It’s as demanding as heart surgery.
- Requires:
- Patience (years of learning),
- Discipline (most panic-sell at losses),
- Full-time effort (not YouTube tutorials).
The Hard Truth Nobody Admits
- Real investors (Warren Buffett, Rakesh Jhunjhunwala) spent decades mastering their craft.
- “Gurus” selling courses? Their real profit comes from your FOMO, not their portfolio.
What Should You Do Instead?
- Start with index funds (95% of traders can’t beat them long-term).
- *Learn fundamentals—read *The Intelligent Investor, not Instagram tips.
- *Respect the market—it’s a *career, not a lottery.
Remember: If it looks too easy, you’re the customer—not the winner.
Peace
Banshi kher