Why I still want to trade in Derivatives, when 91% of the traders are in losses?

 SEBI has published a report that states 91% (7.3 million individual traders) made losses in Derivatives Trading in the year 2023-24. I think Most of the traders are aware that majority of traders will lose money in derivatives but they still continue to trade that includes me. While most of the people have their own reasons to trade, Here I share my thoughts on why I continue to trade in Derivatives. I have passed through losses in derivatives but I shifted my focus to Equity and again came back to derivatives with below details.

Approach – I avoid intraday trading and zero DTE. I am aware I am trading against large traders and their algorithms that I cannot beat in speed or for small gains. I keep analysis and execution parts separate. I prefer to trade manually so I take less  derivatives positions with positional reasons but some times exit on same day if data is suggesting. I always hedge my positions so there is no big gain or  loss at any time.
Asset allocation - Although many individual traders have put 100% of their money in derivatives. I have kept aside 16% of portfolio for derivatives trading.
Strategy - Fight one war at a time. I already streamlined my investing process. The XIRR in 2023-24 was 30% and at end of Q2 2024 it is 25%. So now shifted focus on Derivatives.
Research – Most people see Derivatives trading as gambling or lottery. It is like playing the game of Snakes and Ladders. I try to find method to the madness for which I use data-driven approach using predictive analytics to find reasons on why, when and what caused the upward, downward or sideways movement, noise and volatility.
Vision – The short term vision is to reach 1% of Individual traders that SEBI says are making profit of1 la and above. The ultimate objective  of derivatives trading is to launch my own prop trading company some day.
Note – Purpose of this article is to create awareness and share my views. If you have not spent minimum 10000 hours in learning Stock market trading and investing, do not risk large sum of money. I have already shared what I wanted to share, and what I have not shared is I don’t want to share. I am not SEBI registered, I don't offer any trading or Investing advisory. I don't conduct any trainings.
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