Nine out of 10 individual traders in the equity Futures and Options (F&O) segment have incurred net losses, according to a recent SEBI study. What’s even more striking is that a significant portion of these traders are young individuals – students, early professionals and first-time earners – chasing dreams of quick wealth in the stock market. Armed with smartphones, trading apps and a strong appetite for risk, young individuals are diving headfirst into the world of stocks and finance.

Influenced by social media hype, easy-to-use trading apps and the allure of financial freedom, today’s youth are entering the market in large numbers. However, their journey is often guided more by emotion and the ‘fear of missing out’ (FOMO) than by financial literacy or a long-term vision. This ‘affair’ with the share market is intense, impulsive, and financially draining.

The primary attraction for many young investors is the hope of quick gains. The internet is flooded with self-proclaimed ‘trading gurus’ showing off their daily profits and sharing ‘strategies’ that promise to double investments in days. Stories of someone turning Rs 5,000 into Rs 50,000 in a week become folklore among peers, while the losses, which are far more common, rarely get the spotlight. For every trader who made it big, there are hundreds who lost their savings trying.

SEBI figures underline a painful reality: the odds are stacked against the average retail trader, especially one without experience or proper financial understanding.

• On average, loss makers registered net trading loss close to Rs 50,000.
• Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
• Those making net trading profits, incurred between 15% and 50% of such profits as transaction cost.

The general lack of financial knowledge is one of the main problems. Most college and high school curricula still lack hands-on instruction in risk management, investment and personal finance. Young traders, therefore, frequently get their market knowledge from social media, which may put entertainment value ahead of factual information. Basic ideas like risk-reward balance, asset allocation, diversification and compounding are frequently disregarded. Many don't differentiate between investing and trading. Without this foundation, losses are not just likely – they’re almost inevitable.

Traditionally, Indian families valued saving. Older generations trusted fixed deposits, gold and real-estate for slow but steady returns. But with rising aspirations and exposure to global financial trends, the mindset of the youth is changing rapidly.

Today, many see the stock market not as a tool for retirement planning or long-term goals, but as an opportunity to beat the system and get rich quick. The danger here is not the ambition but the impatience. Building wealth through the stock market requires discipline, research and a time horizon of years, not days. But when youth expect results overnight, they often exit the market as quickly as they entered — with losses and regret.

Financial literacy should be incorporated as a key component of early education. Interactive workshops, virtual simulation platforms and finance courses at the college level can significantly help cultivate knowledgeable investors. It's important for parents, educators and institutions to change the conversation from ‘quick money’ to ‘smart money’. Furthermore, regulatory agencies like SEBI can continue to actively ensure transparency, protect investors, and limit deceptive promotional content on social media.

Despite the risks and setbacks, there’s a bright side. The fact that youth are engaging with financial markets shows a positive shift in awareness and interest. If guided correctly, this energy can be harnessed to build a generation of financially independent individuals who understand both the potential and the responsibility of managing their money.

The youth’s affair with the share market is passionate, bold and full of potential, but also vulnerable to missteps. While the dream of financial freedom is admirable, it must be rooted in education and patience. The numbers speak for themselves: most are losing money, not making it. To transform this affair into a lasting relationship, the focus must shift from gambling for fast profits to investing for long-term goals. After all, true wealth isn’t made in a day. It’s built over time, with knowledge, discipline and a little bit of wisdom.

Chehak Jain is an undergraduate student of the University of Delhi.