Ahmedabad: When people think of investing in the stock market, they look at it from two different perspectives: long-term wealth creation and short-term profit. According to ASSOCHAM, there has been a tremendous surge in retail investor participation. The number of unique investors registered on the National Stock Exchange (NSE) was 3.11 crore in March 2020, which increased 3.6 times to 11.2 crore by February 2025. According to the latest data, this number has crossed 25 crore. This rapid expansion indicates a structural change in India’s financial landscape, pointed out Milan Parikh, Chairman and MD, Jainam Broking Ltd. Words like stocks, shares, trading, indices and derivatives have become part of the common conversation, indicating a growing financial awareness. But awareness alone is not a sign of being prepared. Participation has increased, but the approach to trading is still very different. Many traders still base their decisions on tips received from others or discussions in social circles. If there is no specific framework for decision-making and risk management, trading results can be volatile.
India needs a more healthy participation in the capital market in its journey towards a ‘developed India’. For this, trading should not be seen as just a shortcut to get rich quick, but as a serious business with a definite path to wealth creation. Professionalization means getting systematic education and instilling discipline.
Why are skills, structure and preparedness in trading essential?
The market tends to move more during weekly or monthly expirations, the main reason for which is leverage and the lure of quick profits. Risks are not always obvious in segments like derivatives. For example, options tend to depreciate over time even if there is no major movement in the market. Thus, volatility can quickly increase risk and investors under pressure have to exit with losses.
Dedication and commitment are equally important in trading
There is nothing wrong with working part-time in the markets, but it is more compatible with investing than trading. Active trading requires constant monitoring, real-time risk management and constant evaluation. For individuals whose main business is outside the markets, structured long-term investing or professionally guided strategies are more suitable.
