The accessibility of online trading apps and influencer culture has drawn Gen Z into stock markets at an unprecedented pace. However, SEBI’s data shows that 91% of retail traders lost money in F&O trades in FY24, often due to a lack of financial literacy and high-risk speculation.
Let’s clear the air on some major myths.

Common Stock Market Myths – Debunked!

Myth 1: Stock Market Guarantees High Returns

Reality:
There are no guaranteed returns. High returns are tied to high risks, especially in F&O where leverage can amplify losses just as fast as gains.

Gen Z Alert:
Trading apps make it easy to enter markets, but without proper knowledge, many young investors fall for the "get rich quick" trap.

Myth 2: F&O is Suitable for Everyone

Reality:
F&O and derivatives are complex products meant for experienced, financially strong investors. SEBI reports 93% of F&O traders lost money from FY22 to FY24.

Gen Z Alert:
Retail investors, especially those with incomes below ₹5 lakh, are more vulnerable to heavy losses.

Myth 3: You Can Time the Market

Reality:
Even professionals struggle to "buy low and sell high" consistently. Long-term investing and diversification are far safer approaches.

Gen Z Alert:
Don't act on viral trends or influencer tips. Investing is not a race; it's a marathon.

Myth 4: More Trading = More Profits

Reality:
Higher trading volumes mostly benefit brokers and exchanges, not individual traders. SEBI data shows only 7.2% of F&O traders made profits in FY24.

Gen Z Alert:
Gamified apps encourage overtrading — stay focused on quality over quantity.

Myth 5: Stock Market = Gambling

Reality:
Long-term investing in quality stocks or mutual funds is based on research and strategy, unlike gambling, which relies on pure chance.

Gen Z Alert:
Avoid speculative trades. Focus on solid financial planning and disciplined investing.

Myth 6: You Need Big Money to Start

Reality:
Investing is accessible to everyone. SIPs start from as low as ₹500, and you can buy even a single share.

Gen Z Alert:
Start small, but start early. Compounding is your best friend.

Key SEBI Data You Must Know

• 91.1% of individual F&O traders lost money in FY24.
• Retail investors below ₹5 lakh income suffered most losses.
• Gen Z (under 30) made up 43% of F&O participants.
• High profits are concentrated with institutional investors using algorithmic trading.

Why Gen Z Is at Risk

• Easy access to trading apps without education.
• Influence of social media and “get rich quick” narratives.
• Lack of understanding about high-risk instruments like F&O.

Smart Steps for Gen Z Investors

Learn Before You Leap: Focus on financial literacy.
Diversify: Spread your investments across different assets.
Think Long-Term: Avoid chasing quick profits.
Use Technology Wisely: Follow genuine educational resources, not just flashy influencers.
Seek Professional Advice: Consult SEBI-registered advisors for sound guidance.

Conclusion

The stock market offers great opportunities — but it’s not a shortcut to wealth.
By busting these myths and promoting informed investing, we can help Gen Z build sustainable, long-term wealth instead of chasing risky, speculative gains.
Stay smart, stay invested, and remember: Patience and education always beat speculation.