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Bloomberg Quint

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Image Credit: Bloomberg Quint

Money Wise: Now You Know Why You Lost Money On Index Trading

  • SEBI found that a U.S.-based hedge fund manipulated the Indian stock market, earning Rs 43,289.33 crore through trading in index options.
  • SEBI made changes to protect traders, such as limiting index derivative contracts and increasing lot sizes due to 90% of retail traders losing money.
  • To make money as a trader, it is suggested to limit losses, as competing with institutions using algorithm-based strategies is challenging.
  • Long-term wealth creation advice includes building a stock or mutual fund portfolio for compounding, with a rule suggesting Rs 15,000 monthly investment for 15 years to reach Rs 1 crore.

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