Hi, I am not a F&O trader, not having partnership with any broker, and not an influencer. I am just sharing my thoughts.
As a professional I found in this year lots of IT returns are filed with F&O trading loss. On social media, Calls, whatsapp groups, Everywhere there is a query regarding what I should do with these losses. You will find answers of this in my previous article Future & Options (F&O) Accounting, Audit and Taxation
Well, In this article I am not going to give you any professional advice, As I said I am just sharing my thoughts.
During the work I found that most of F&o traders incurred huge losses during the year. Most of them are salaried employees and lost huge amounts in F&O trading.
There are lots of influencers on YouTube, Telegram channels and Whatsapp groups etc who draw a picture that F&O trading is the easiest way to make money. Is it really possible ?? It could be.
But one should keep in mind that F&O is not investment, it is trading. Very few are making money. There is a misconception that You can create wealth through it. No doubt it has high return potential but keep in mind risk is also associated with it.
F & O trading is a zero-sum market. Means If you are earning and someone on the other end is losing. A study says only 2%-3% traders make money through it and during this Income tax season I found it true.
But if you are not falling under this bracket then take a pause. It is advisable to quit at an early stage. Most people waste huge amounts of money in F&O trading before realizing F&O trading is not their cup of tea. F&O trading tests your mental and emotional balance. I found some traders who do revenge trading to set off the earlier losses and incurred more losses during the revenge trading. This should not be a way. You are putting more money at risk and resulting loss at the end. It could lead to a debt trap or create a hole in your financial health.
F&O and intraday are time bound, if you didn't make money within that time, you are going to lose it all. In equity you have unlimited time to hold. One should look for other investment opportunities which can help to increase the capital and maintain financial health.
Make decisions wisely !