There was a shocking report from SEBI (Securities and Exchange Board of India) stating that 93% of retail traders in the F&O (Futures & Options) segment are incurring losses. These are not just figures but instead depict the actual happenings behind those green screenshots and success stories flooding your feed.
Adding to that, more telling statistics at the state-level were revealed. The top states with maximum trading losses are:
- Telangana,
- Andhra Pradesh,
- Karnataka,
- Tamil Nadu.
These are not backward states. They are the home of several of India’s tech hubs and business centers, and some of the highest per capita income groups reside here. So how come even these educated and financially literate populations have not been able to make it in the stock market?
The Illusion of Success in Trading
Let’s be honest. Social media has made trading look like a “laptop lifestyle.” Quick profits. Fancy setups. Flashy cars. But behind that illusion is a reality full of anxiety, losses, and debt.
The truth is, trading is simple—but not easy.
According to Mallinath Mulage, Founder & CEO of The Safe Trader Academy, the problem lies not in the stock market itself but in the mindset, approach, and education level of traders.
Below is a deeper dive into his 20 critical observations—real reasons why traders are consistently losing money.
1. Traders don’t spend enough time to learn
A lot of people go for options trading after getting a glimpse of the venture from some YouTube videos or a webinar. But options trading is not something that can be learned over the weekend. It is a combination of market knowledge, technical analysis, psychology, and strategy-making.
Would you ever want to board a plane having learnt just a couple of Instagram Reels about flying?
2. Traders want to make quick money
People are drawn to options on account of the potential for high returns. Yet high returns imply high risk. The urge to double money in one trading day leads traders to ignore the basic rules of trading and indulge in impulsive trades.
Fast money mindset = fast losses.
3. Traders are greedy
Traders restricting their positions, yet hoping for more profits, almost always are losers as positions reverse and turn against them. Many traders don’t book profits; instead, they double the stake, hoping for recovery on a trade that has already gone against them.
Greed allows you to stay in the market longer than you ever should.
4. Emotional
Fear, greed, hope, and regret are the four demons of trading. Every time emotions step into the decision-making process, discipline is thrown out of the window. Most retail traders fail to have a plan; they merely react to every single candle on the chart.
Emotion + money = disaster.
5. Not gaining required skills
Successful trading is about multi-skilled learning: reading charts, understanding market sentiment, knowledge of risk management, and so on. Skipping these steps is like going to war without the weapons.
“Skill pays the bills.”
6. Not maintaining stoploss
Stop loss is your safety net: not placing it or moving it, hoping that the trade will “come back,” is perhaps the fastest way to blow your account.
A stop loss is not an option; it is a matter of survival.
7. Naked options buying
Most new traders just buy calls or puts without bothering about volatility (VIX) or time decay (theta) or direction. Buying options with not a care about strategy is akin to gambling at whatever roulette does.
Trades with low probabilities generate high stress.
8.Wrong entry and wrong exit
It is common to enter too late or exit too early or late. Without clear rules about when to enter and when to exit, you will be gambling.
It is not timing that is everything; it is the only thing.
9. Don’t want to learn from the mistakes
Too many traders make the same mistakes over and over again: leverage too much, hold onto a losing trade, hold on for news… Past trades are never reviewed, so nothing changes.
Insanity is repeating the same thing over and over and expecting different results.
10. Overtrading
Too many trades within a day cloud a trader’s judgment and drain him emotionally. Some traders refuse to stop even while on a losing streak; they instead continue trading to “recover.”
Overtrading=death by a thousand cuts.
11. Depends on tips
People blindly follow Telegram/WhatsApp tips without understanding the rationale behind it. Even if a tip works once in a blue moon, a false tip would wipe out weeks of profit.
If tips worked, then everyone would be a billionaire.
12. Social media influencer
Instagram reels and YouTube videos flash across the screen with huge profits but hardly show losses. It does not represent what trading truly is, thereby setting up unrealistic expectations.
Social media shows highlights, but never the actual game.
13. No Trading Journal
Not maintaining one means you don’t know what works for you and what doesn’t. A trading journal inculcates self-awareness and hones your edge.
What gets measured gets improved.
14. No Mentor or Trade Buddy
Without someone to guide you, it’s likely you will take much longer to learn or, worse, pick up a few bad habits. A mentor will help you avoid rookie mistakes and hold you accountable.
All pros were once beginners, and so should you.
15. No Back testing
You need to test your strategy on historical data before going live. If you don’t know how your set-up is performing over maybe 100 plus trades, you are literally trading in the dark.
Never risk real money on untried strategies.
16. Not able to find the right institute to learn offline
There’s every online video and free content and then there is the structured in-depth offline education hard to find. They even lack hands-on guidance.
Learning is as personalized as it comes.
17. Taking risk beyond the risk appetite
Big bets might hit big on a single trade jackpot; however, jackpots are often lost in each losing trade. Be in it for life, not just greedily.
Respect the risk or you’ll learn it the hard way from the market.
18. Keep high expectations
Living on that daily dream of trading wages with little money leads to much agony and poor decisions. Trading is playing a game of probability, not a game of certainty.
You don’t harvest everyday; you plant, wait, and then reap.
19. No risk management
It will result in no risk per trade or exit point; traders will thus be wiped out. Risk management is what keeps one alive in trading.
The first rule of trading: Don’t lose big.
20. No Money Management
Insufficient knowledge of capital management on trade amounts, withdrawal amounts, and re-investment amounts can bring down even the best strategies.
It is not how much you make. It is how much you keep.
A Message from The Safe Trader Academy
We at The Safe Trader Academy are devoted to overturning the 93% loss statistic. Working offline and online, we have trained traders for over five years, helping them move from losses to a stable performance via structured education, real-time trading practice, and one-on-one mentorship.
The Academy’s Focus:
✅ Strategy Development
✅ Risk & Money Management
✅ Trading Psychology
✅ Live Assistance in the Market
✅ Backtesting & Journaling
✅ Personalized Mentorship
Conclusion: Trading Is Not a Shortcut but a Skill
For those who have lost, the markets are not punishing you; they are testing you. With the right education, mentorship, and mindset, you can turn the game in your favor.
🔁 Learn > Practice > Refine > Earn
Don’t be part of the 93%. Be the exception.
