If there is risk, there is love… How youth are falling into the trap of revenge and FOMO trading in the stock market, read the report.

New Delhi: Nowadays the trend of trading in stock market is increasing very fast, especially among the youth. Now a larger number of youth are investing money in the stock market than before. Some of these youth are investing after doing research and taking advice, while there are many who are investing in the hope of earning money overnight. Many of them do not even understand the market risks and are investing money even by borrowing. On the other hand, a SEBI report shows that 71% people are losing money in intraday trading. In such a situation, the question arises whether the young generation is putting its future at stake in order to earn easy money?This mistake can prove costly
Last year, a strange case came to Roshan Agarwal, a chartered accountant from Assam. Anand (name changed), aged 18 and a BTech student, had lost Rs 20 lakh in online trading. he/she had borrowed money from his/her friends and also took loans from some dubious apps. Anand told that one of his/her friends had claimed to earn Rs 1 crore from trading in just one year. he/she started trading as per the advice of his/her friend and joined Telegram groups where he/she got inside tips of share market. Aggarwal explained to him/her that he/she should first invest with less money, but after a year Anand came to him/her again, this time having lost Rs 26 lakh.

If there is risk then there is love…it’s okay just to hear
Risk hai to ishq hai – This dialogue may sound good in films, but in real life it can prove to be very dangerous. According to SEBI report, while 15 lakh people used to do intraday trading in FY19, this number has increased to 69 lakh in FY23. In this also the number of youth below 30 years of age has increased from 18% to 48%. But the matter of concern is that 71% of intraday traders have suffered losses in FY23.

In intraday trading, shares are bought and sold within the same day. But this is not the only type of trading that is taking people by storm. Trading trends in the futures and options (F&O) segment have also increased rapidly, and so have the losses. 93% of retail traders have suffered F&O losses in the last three years, with each individual incurring an average loss of Rs 2 lakh.

Beware of such finfluencers…
If you understand in simple language, in futures trading you speculate about the future price of the share. Suppose the price of a share is Rs 100 today and you think its price will increase in the future. So you take a futures contract to buy 100 shares. If the price increases, you make profit and if it decreases, you make loss.

All this may sound a bit difficult, but nowadays many apps have come which make trading very easy. Additionally, there are many people on social media who call themselves ‘Finfluencers’ and tell people how to get rich quick from trading. Seeing all these things, everyone is getting attracted towards trading, be it a housewife, a retired person or a student.

This is how addiction gradually develops, just look at these words
On online platforms like Reddit, many people anonymously share their stories of how trading addiction has left them in debt. But despite this they are not able to stop trading. Dr. Parth Soni, a psychiatrist at Alpha Healing Center in Vadodara, says the ‘dopamine hit’ you get from trading is similar to gambling addiction. In the beginning, when people make profits, they feel good and they start trading more. Then gradually it turns into an addiction. They think that one day they will cover all their losses.

Some new terms are also used to explain such things like ‘revenge trading’ and ‘FOMO trading’. ‘Revenge trading’ occurs when people continue trading even after suffering a loss, thinking that they will recoup their losses. Whereas ‘FOMO trading’ happens when people start trading themselves after seeing their friends or relatives earning money from trading.

Now there is a need to come to the clinic
Dr. Manoj Kumar Sharma, coordinator of Bengaluru’s ‘Service for Healthy Use of Technology’ (SHUT) Clinic, says that people have now started understanding that trading addiction is also a disease like gambling or alcohol addiction and its treatment is possible. We found the first such case in 2021. The patient was referred to us by his/her family. he/she had lost his/her job due to the pandemic and started trading on his/her phone. Soon, he/she couldn’t stop himself.

Dr. Sharma, whose team has worked on many cases of people seeking treatment for trading addiction. Last year, a 39-year-old man was brought to a de-addiction clinic by his/her family members after he/she lost Rs 30 lakh in trading. Like Anand, the man had already suffered huge losses. Treatment usually lasts between two to six months, and involves a variety of measures.

Experience is needed here too
Experienced investor Vivek Bajaj connects this to a bigger problem. he/she believes that another problem is that unemployment has increased. Besides, many advertisements also lead the youth in this direction. he/she also drew attention to fake apps and said that inexperienced investors get lured by the idea of ​​hitting the jackpot. Bajaj says they forget that just as a doctor or lawyer has to practice for at least seven years to become good at his/her job, trading is a skill that takes years to learn.