New SEBI Study: 70% of Intraday Traders Face Losses - Are You One of Them?

Let's discuss the issue that many traders do not acknowledge - the process of losing money. According to a recent SEBI research report, approximately 70% of intraday traders will end up losing money while trading in the market. Shocking? Perhaps not. If you have even explored intraday trading, you know it is highly challenging and unpredictable.

Most people start thinking, "I will exit with some easy profit today, and tomorrow I will do the same." But that may not be how the market works. Intraday trading can be profitable - IF - it is done with practice, skill, patience, and a strategy that works for you, not your neighbour's WhatsApp tip.

So before you think about your next trade, let's break down - why do traders lose money, what can you do differently, and how can smart intraday trading strategies help you recover from your blemished trading record?

What the SEBI report actually says

SEBI’s findings weren’t exactly a shocker, but they were definitely a wake-up call. The study revealed that:

1. Nearly 9 out of 10 traders in the equity futures and options segment lost money.
2. Around 70% of intraday traders saw consistent losses.
3. Only a small fraction, roughly 11%, managed to make a profit.

And here’s the kicker: the average loss was much higher than the average profit. Most traders who made money earned small amounts, while those who lost money lost big.

But why does this happen? Let’s get into the mindset that leads most people down this path.

Why most intraday traders lose money

If you have found yourself in the “quick profit” loop, you are not alone. It all seems to start with excitement and ends with frustration. Here are a few reasons this tends to happen so frequently:

1. Overtrading with no plan: You see a stock move higher and, without thought, you jump in. The problem? There is no clearly defined entry or exit strategy. You are reacting and not planning at this point.
2. Not controlling risk: A large majority of traders often overlook the fact that protecting capital is just as essential as making profits. Without stop-loss orders, one miscalculated trade wipes out your profits.
3. Decisions made out of emotion: Fear and greed are the two largest enemies of intraday trading. When you let emotions or feelings motivate your trading rather than presenting a clear view of the analysis, you have eliminated logic. 
4. Doing no proper research or strategy: You may have heard someone on social media say, “Buy this stock now.” If you act on this, you are not trading, you are guessing.
5. Inconsistency of following your own rules: The best traders adhere to their own rules. But once you start thinking about chasing a loss or doubling down without any consideration, the market will educate you at a great cost.

The role of strategy - your secret weapon

Here is where things become fascinating. The SEBI report may not provide encouragement, but simply being in the SEBI report does not indicate that intraday trading is not going to work. The traders who make money on a consistency basis are not "lucky", they have a plan. The traders follow a plan, which consists of intraday trading strategies that make sense to them.

The concept is quite simple; you do not control the market, but you can control how you respond to the market.

The following are some common strategies that help smart traders stay in front of the market:

• Momentum trading: You focus on stocks that are already in motion, whether that is moving quickly upward or downward. You get into the stock while the momentum is sweeping you into the market and exit before the momentum reverses.
• Breakout trading: You keep track of stocks that burst through some resistance levels or fall below some support levels. Typically, these intraday stocks experience some decent short-term price movement.
• Reversal trading: You find stocks that you believe have become "over-bought", or have become "under-sold" with technical indicators like RSI or MACD, and trade against the trend for some minor corrections.
• Scalping: You take multiple trades every day and try to cash in on small price movements, thereby making an accumulative profit from small movements.

Setting up the right foundation

Prior to pursuing the next "winning trade," ensure that your fundamentals are in place. Here's how to position yourself for success: 

1. Begin with education: Understand technical analysis, market psychology, and risk management. There are no shortcuts - knowledge will give you the best return. 
2. Use pretend trading for practice: Test your strategies using pretend money to see how your strategies would work in practice without real emotional mistakes conspiring against you. 
3. Be realistic in your expectations: You aren’t going to double your capital in a month. Accept small, consistent profits, and think long-term, not short-term. Page 3
4. Record every trade: Maintain a trading journal. Document your entry, exit, reason behind the trade, and all other details of the trade and its outcome. This benefit alone will improve your results tremendously.

Why discipline matters more than timing

You’ve probably heard the phrase “timing is everything.” In intraday trading, timing is important, but discipline beats it every time.

Markets will always move unpredictably. What you can control is your ability to stay calm and stick to your plan. When you follow rules consistently, like never risking more than 2% of your capital in one trade, you protect yourself from emotional decisions.

The traders who survive and thrive are not the ones who predict perfectly. They’re the ones who control their losses better than others.

The truth about risk and reward

It's easy to think you are better than the rest in trading. The reality is that professional traders lose too. But professional traders know how to minimise losses and maximise gains. If you want to be one of the 30% that succeed in trading and investing, incorporate these future habits today.

• Stop losses early: do not hold onto trades that are bleeding red, waiting for the position to turn green.
• Always use a stop loss: never place a trade without a stop loss. 
• Do not revenge trade: you cannot fix a bad trading day with another trade.
• Review your trading weekly: review your trades and learn from the patterns, whether negative or positive.

Building these habits will not turn you into a perfect trader, but they will make you a smarter trader over time.

Technology can make you sharper

You don’t have to do everything manually. Tools like stock screeners, charting platforms, and trading simulators can save you time and effort. Some traders even automate their strategies once they’ve tested them thoroughly.

And if you’re just getting started, most brokers now offer integrated platforms where you can research, execute, and monitor trades seamlessly. Whether you trade equities, derivatives, or even commodities, having the right setup makes all the difference.

Why most traders quit (and how you can avoid it)

Many traders quit not because they lack skill, but because they lose confidence. The constant ups and downs of intraday trading can drain you mentally.

Here’s how you can stay in the game longer:

1. Take breaks: You don’t need to trade every day.
2. Celebrate small wins: They add up over time.
3. Stay curious: Keep learning, markets evolve, and so should you.
4. Focus on process, not outcome: When your system works, profits follow naturally.

It’s not about beating others. It’s about improving your own decision-making each day.

Wrapping it up

The SEBI study paints a tough picture, but it’s also a reality check you can use to your advantage. Most people lose money in intraday trading because they treat it like a shortcut, not a skill. But if you take the time to learn, plan, and follow sound intraday trading strategies, you can move from that 70% who lose to the 30% who actually grow.

Think of trading as a marathon, not a sprint. The goal isn’t to make a fortune overnight, it’s to stay in the market long enough to let your experience pay off.

So next time you trade, ask yourself: am I reacting, or am I strategising? Because the moment you shift from guessing to planning, you stop being just another statistic and start becoming the kind of trader SEBI’s next report might actually write about (the profitable kind).