Trading is an art, zero sum game, not a social media trend: Jainam Broking’s Milan Parikh

Trading in Indian equity markets is a skill-driven profession that demands discipline, risk management and capital protection, not cues from social media, said Milan Parikh, Chairman and Managing Director at Jainam Broking. “Trading is a zero-sum game. If one trader makes money, another loses. Many people follow social media videos and end up losing capital,” Parikh said, adding that trading should not be viewed as a short-term opportunity but as a disciplined pursuit focused on reasonable returns and capital preservation. He said Jainam prioritises traders with consistent profit-and-loss records rather than those with large online followings. Parikh was speaking at the seventh edition of the Indian Options Conclave (IOC 7.0), hosted by Jainam Broking at the Surat International Exhibition and Convention Centre. The two-day event saw over 11,500 registrations from more than 450 cities, reflecting growing participation from the trading community. Women traders accounted for 12.2 per cent of total registrations. Parikh said exchanges, broking firms and clearing corporations are increasingly engaging with active traders to strengthen the overall market ecosystem. Feedback from traders who depend on markets for their livelihood is critical to improving systems and processes, he said, adding that a robust trading environment requires strong intermediaries across the value chain. On market levies, Parikh said the recent hike in securities transaction tax (STT) is significant and will impact trading volumes. “This is not a nominal increase. Retail investors may not feel the impact immediately, but serious traders will be affected,” he said. Despite regulatory curbs in recent years, Parikh said market activity has remained resilient. He noted that STT collections have added around Rs 40,000 crore to government revenues, underscoring sustained participation. Referring to derivatives markets, Parikh said Bank Nifty had once emerged as the most traded contract globally, and while the withdrawal of its weekly contracts led to an initial dip, volumes normalised within three to six months. Parikh described India as among the best-regulated markets in the world, citing advancements in technology, transparency and regulatory oversight over the past two decades. “The way Indian markets have evolved in terms of regulation and quality is unmatched. These strengths position India well to emerge as a global trading hub,” he said. He also suggested that raising the minimum margin requirement could help professionalise trading. According to Parikh, the regulator could consider increasing the minimum margin size to around Rs 5 lakh. While such a move may dent volumes initially, it would ensure participation by serious traders, he said, drawing parallels with portfolio management services and specialised investment funds, which have minimum ticket sizes of Rs 50 lakh and Rs 10 lakh, respectively. Comparing India with global markets, Parikh said about 90 per cent of Indian retail traders incur losses, compared with roughly 80 per cent globally. The narrower gap, he said, reflects India’s stricter disclosure and transparency norms, which make outcomes more visible than in many overseas markets. Parikh reiterated that trading is not suitable for everyone and that losses tend to rise during volatile and corrective phases. He added that derivative positions used for hedging during major events such as elections or budgets should not be classified as speculative losses. “Hedging is insurance for portfolios. Discipline, not emotion, determines long-term survival in markets,” he said.