Why salaried people mustn’t bask in F&O buying and selling

In mild of current discussions on social media, the dangers related to future & choice or F&O buying and selling got here to the limelight but once more when a chartered accountant highlighted the dangers of F&O buying and selling on social media after submitting a tax return for a shopper who had a ₹12 lakh wage and incurred a ₹14 lakh loss in F&O buying and selling. 

“Filed a salaried ITR with 12 lakhs salary and 14 lakhs loss in F&O. Hope people realise that F&O trading and doing job simultaneously is not everyone’s cup of tea,” tweeted CA Nilisha Mantri about one in every of her shoppers.

CA Nilisha Mantri’s cautionary story emphasizes that partaking in F&O buying and selling whereas holding a job requires cautious consideration and adequate capital.

“99% of Salaried Income Tax filers who are also dealing in F&O derivative & shares trading have reported and made losses! Salaried make losses in F&O, invest so much time and effort in trading and at the same time may not be able to give 100% to their Job. Salaried should invest time in developing their core skills to increase their primary salary income and target passive secondary steady income from rent, MF, etc in the long run,” tweeted CA Chirag Chauhan.

The experiences shared by professionals like CA Chirag Chauhan and the evaluation carried out by Sebi additional spotlight the challenges confronted by particular person merchants. 

“It is obvious {that a} substantial variety of merchants have encountered losses within the fairness derivatives phase,” mentioned Amit Gupta, MD, SAG Infotech.

As we navigate the world of economic markets, it’s important to method F&O buying and selling responsibly and make knowledgeable selections. Building our core abilities to extend major wage revenue stays a prudent technique. While investing may be rewarding, it’s essential to be well-prepared and cautious earlier than venturing into the risky F&O buying and selling realm. Let us encourage one another to hunt knowledgeable recommendation, assess threat tolerance, and prioritize the soundness of our monetary futures, added Amit Gupta.

Earlier, ace investor Vijay Kedia identified the professionals and cons of F&O buying and selling, particularly for a newbie who’s nascent in inventory market investing. The market mogul mentioned {that a} newbie trying ahead to minting quick cash from the inventory market enters F&O buying and selling and ends up shedding cash.

89 per cent of the F&O merchants misplaced cash in FY22, market regulator SEBI knowledge confirmed. And the typical loss incurred by these F&O merchants was round ₹1.10 lakh per head.