A 3rd Year B-Tech chap down the drain due to Impulsive Trading Addiction

A third-year BTech student has reportedly lost ₹46 lakh through Futures & Options (F&O) trading, according to CA Roshan Agarwal on social media platform X

The student incurred a ₹26 lakh loss this year, in addition to a ₹20 lakh loss last year by trading. Despite previous advice to avoid shortcuts for quick income, the student, who has no income, continued investing due to an addiction he can’t quit. The losses were financed through personal loans, borrowings from friends, and even money from his parents’ accounts without their knowledge. Agarwal criticized the influence of financial influencers (“influencers”) who glamorize quick wealth on social media, misleading young and inexperienced traders. He emphasized that social media often highlights profits while concealing losses, making it seem like a lucrative venture.

Influencers on platforms like Instagram and Telegram sell courses on F&O trading, contributing to the false allure of easy money. Agarwal cautioned against investing in F&O without adequate expertise and practice, likening it to playing with fire. He referenced data from Nithin Kamath, Founder of Zerodha, stating that 99 per cent of F&O traders earn less than 7 per cent returns, which is lower than traditional fixed deposits. He stressed the importance of understanding the basics, practicing with small amounts, and developing the necessary temperament before fully engaging in F&O trading. In summary, the case of the student underscores the risks of unregulated and uninformed trade-investment fueled by misleading social media portrayals. Agarwal’s warnings aim to protect young people from falling prey to the seductive but often deceptive promises of quick financial gains through F&O trading.