58% of Delhi stock traders missed the benchmark performance; check who underperformed the most

As much as 58 per cent of Delhi-based traders underperformed compared with the benchmark equity index over the past one year, according to the latest survey by Samco Securities. The study further highlighted that option traders underperformed the most. It was followed by derivative traders, hybrid traders and investors.

The brokerage further added that 65 per cent of investors are unaware of their exact stock market returns, while 63 per cent don’t target to beat market indices. At present, the total number of demat accounts stands over 125 million in the country.

The survey came at the time when the benchmark BSE Sensex has gained 12 per cent in the past 12 months. On the other hand, the BSE MidCap and BSE SmallCap indices have gained 24 per cent and 27 per cent, respectively, during the same period.

With an objective to minimise losses and education market participants, Samco Securities gave trade score facility to its clients. If the trading score of the client comes less than one, it tells traders that their chances of making profit consistently from stock market is very low. Likewise, a score somewhere between 1 and 3 tells traders that they are doing average, but to become a successful trader they need to improve trading. A score of more than 3 tells market participants that their one should continue with their current trading strategy and keep tracking it.

Nilesh Sharma, Executive Director and President, SAMCO Securities, said, “We understand the challenges faced by traders and investors in the stock market. With the #AndekhaSach Campaign, we are revolutionising the way traders approach the market. In this pursuit, we have added ‘My Trade Story Feature into Samco trading app.’”

Here’s a breakdown of the data for each category for Delhi traders shared by Samco Securities:

Options Trader: This has the lowest outperformance percentages across all time frames, with the highest being at 3 months (41.70 per cent). They experience a significant level of underperformance, especially at 12 months (77 per cent). Their average win size is Rs 5,685, while the average loss size is Rs 6,175.

Derivatives Trader: This trader also experiences a significant level of underperformance, particularly at the 12-month mark (68.1 per cent). In terms of trade size, the average win is substantial at Rs 20,419, while the average loss is Rs 37,476.

Hybrid Trader: This category shows balanced performance at all time frames, with the highest outperformance percentage occurring at one month level (62.6 per cent).

Their underperformance is relatively moderate, with the lowest underperformance observed at 1 month level (37.4 per cent). This trader achieves an average win size of Rs 4,432 and an average loss size of Rs 7,070.

Investor: The investor category exhibits a more conservative approach, with a focus on longer time frames. They achieve the highest outperformance at 12 months (54 per cent) and the lowest underperformance at 1 month level (27.30 per cent). The average win size for this trader is Rs 26,502, and the average loss size is Rs 16,322, indicating a larger disparity between wins and losses.

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