What SEBI’s F&O study means for practice
In September 2024, SEBI published a study of more than 1 crore individual equity F&O traders. 93% of them lost money between FY22 and FY24, with an average loss of about ₹2 lakh each including transaction costs. Only around 1% made more than ₹1 lakh in profit after costs.
The lesson for paper trading is not to find a cleverer options strategy. It is to practise position sizing, stop losses and journaling until you can stick to them, because that is what most losing traders skip.