New 33-page SEBI research paper confirms 90% FnO Traders are Loss Makers

Here is a 33-page research from SEBI that confirms out of almost 45lac derivatives traders, 90% are loss makers, and many more interesting facts. If you seriously want to build a career in trading, READ THIS and do a reality check first.

Study - Analysis of Profit and Loss of Individual Traders dealing in Equity F&O Segment

Literally everyone who reads this research paper will say, well, we will not make the same mistakes as the 90% did and eventually will be profitable, but remember, data never lies.

Goal is not to discourage trading as a career but first do a reality check and make sure other career options are suitable or not, heat of the moment decisions are not what makes a trader.


Trading is risky. We agree it’s really difficult to make money via trading in the markets. Making profits from trading requires discipline and proper risk management to limit the losses. To enable the same for traders, we launched Trader’s Control to set alerts and kill switch for overtrading, and add a mentor / trading buddy for accountability. And we are glad to see ~45% traders on Dhan use trader’s control to trade better!

Also, here’s an interesting take on the statement that only 1% traders make profits in the market -

@vinay_sd17 @MohitGolecha @Monil @PushpakDagade @amit @pavz what are your thoughts on this?

In simple words, Trading is a multiple-choice, time bound, open book exam with negative marking, attempt the question paper wisely.

I am also 1 of the loss traders :sweat_smile: Now I am Improving day by day!

As with any other business, Trading (FNO) is too risky. Until it is hedged properly. “Trader’s control” is the 1st step Dhan introduced in the trading system to traders being self-disciplined, which I am also one among 45% of users :slight_smile:

But, Still, we have a lot more that can be doable for our traders on top of “Trader’s control” by adding.

  1. RMS: By Client level - The client can configure it before the trading day starts & he/she should not provide with the option to change it for the rest of day.
  2. RMS: Auto Square off every position & cancel all the orders (per point 1) reaches & Shut the connection for that account for the remaining market hours. No matter what, he/she will be still blocked for the rest of the day to take any more trades on that account.

I know technically how much work the trading systems & server needs to handle for this kind of logic, for scrip classification like INTRADAY & CNC, etc. Along with that it definitely hurts a lot for any broker, in terms of brokerage (Hard truth), but if we somehow find a way to bridge these in the existing Trader’s Control feature, it will be a super cool one for all traders out there.

Seeing today’s session, looks like numbers would be more interesting in the next year report.


Lol yeah. I am contributing to the 95% group today :crazy_face:

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