Why F&O Trading Is So Difficult

By | January 26, 2023 3:19 pm

Many new traders jump into trading thinking that it is easy to make money. Most are usually captivated by the lure of advertisements telling them how easy it is to make money by taking some signals and spending only 30 minutes a day monitoring the market.

The truth is, learning about trading is not as easy as attending a seminar and taking a book and reading it. Trading is a highly skilled profession similar to a lawyer, a doctor or an engineer. It takes about 3-5 years to get a degree in these professions. After that, the student still need to gain experience for a few years before knowing the ins and out of the profession. It is only after 5 years that the new professional will be able to produce some good results.

The truth is trading is NOT easy but it’s also NOT “rigged.” Like any worthwhile endeavor, trading has a steep learning curve followed by ongoing challenges.

This report from regulator gives a complete clarity on the reality of trading. Which is definitely tough but not impossible.

Here is the SEBI study everyone is quoting on losses made by 90% of F&O traders – superb job by SEBI in educating. Ultimately, the regulator’s job is to remove ignorance from the market and not stupidity. sebi.gov.in/reports-and-st

Today Sebi released a detailed study on the P&L of individual traders in F&O

  • No Of  F&o Traders Zoomed – 7.1 Lakh (FY-2019) To 45.2 Lakh (FY-2022)
  • 89% Made Losses In FY 22. Avg Loss Of 1.1 Lakh.
  • 11% Made Profit. Avg Of 1.5 Lakh.
  • Top 1% Traders Account For 51% Of Net Profit



Eye opening stats in the SEBI report on active

  • FNO traders – 500% growth in 3 years! –
  • 89% people are in loss. –
  • Top 1% traders take 51% of profit pie.
  • 4000 FnO traders made ₹95L each
  • Top 20K FnO traders made ₹28L each and
  • Rest 3.78L made ₹49K 

  • Trading is HARD! Kudos to the regulator for keeping investors educated.


So let us have a look at some of the reasons why trading is so hard!

Much False Information

The Internet is full of trading advice and gurus preaching how indicators should be used and what makes money. The truth is that most of this advice is outright garbage and that knowing what is worthwhile indeed is not an easy task!

In order to not fall victim for false trading advice, it is important that you learn to test everything in a backtesting software before going live! That way you can uncover much of the false trading advice before it is too late!

It needs Experience- First and foremost, the key thing is an experience without it no one could triumph over any task whether it is trading or any work. Novice traders could just start with minimal to get a little bit of experience and confidence to move to further steps.

Control over Emotions- In trading people require control on GREED and FEAR. When it comes to trading trader needs on control to get more than expected and fear losing much. Where GREED ruins the capital in a little time, whereas FEAR causes traders to exit trades too early ruining their equity curve.

PATIENCE- The most important thing and always to be maintained is PATIENCE. Without patience, traders lose their much of capital. Trading needs a lot of tolerance power over their trades because in trading losing and winning don’t matter, what matters is patiently staying in the market despite having many vicissitudes.

Having proper guidance- Trading is the hardest game in the initial stage, however, one needs proper guidance by which they can survive in the market by gaining experience. There shall be an expert and well-experienced mentor for guiding you in the initial stage when it comes to trading in the stock market.


Becoming a trader who is consistently profitable is rare, and this fact hinders one from making a firm commitment. Many professional traders warn novices that trying to gain success overnight is daunting, unrealistic, and quite discouraging. It’s best to take it one step at a time. Gain knowledge, develop skills, and then gradually increase your position size. Even seasoned traders point out that trading is so difficult in the long term that they just take it “one day at a time,” or one trade at a time. It’s easier to develop commitment by first committing to smaller goals before striving for larger goals. Following this wisdom will help you strengthen your long-term commitment to trading.

Category: Trading Loss Trading Psychology

About Bramesh

Bramesh Bhandari has been actively trading the Indian Stock Markets since over 15+ Years. His primary strategies are his interpretations and applications of Gann And Astro Methodologies developed over the past decade.

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