'Addicted' To F&O Trading, Engineering Student Loses Rs 46 Lakh In Stock Market

There has been substantial growth in the participation of retail traders in futures and options (F&O) trading. While the prospects of quick profits and the speculative nature of the instrument have attracted investors at large, they also come with a lot of risk factors. This is another reason why investors are suggested to approach F&O trading with proper knowledge and careful risk management.

Keeping in view the major risk factors, a chartered accountant recently shared the shocking case of a young college student who lost Rs 46 lakh by investing in futures and options.

Roshan Agarwal, a professional CA, shared details about the student, whose ITR filing he has been handling. Agarwal revealed that he recently filed income tax returns for a third-year BTech student and discovered that he had a loss of Rs 26 lakh with zero earnings.

“Yesterday I filed one ITR of a 3rd year BTech student whose income is ZERO but loss from F&O is 26 lacs. Last year too he had around 20lacs F&O loss. Last year I tried to convince him not to take shortcuts for quick income and leave F&O and he was convinced,” he wrote.

He further shared how the student got addicted to trading and couldn’t quit it, despite having to go through such major losses. “His parents are unaware of the same. He took personal loans from banks, friends and some money from his parent’s accounts to fund the same,” the CA continued.

https://twitter.com/rhoeshan/status/1804751734121824263

While sharing the details about the young student and his decisions, Agarwal put out a word of caution, urging innocent investors not to get manipulated by quick-rich schemes sold by some influencers across social media platforms.

His X post instantly sparked a debate on social media, drawing divided reactions from users. Some even questioned how an unemployed student could obtain such large amounts of personal loans. A user wrote, “3rd year student filing ITR? At that age, I don’t know the meaning of I.”

Another user, while speaking about the possibilities of the student’s earnings, wrote, “Where did he manage to get all of it? If he’s into freelance stuff then he’ll earn it again. People who are shocked to hear a 3rd year guy filing an ITR, I filed my first ITR at 18.

“Shouldn’t blame trading for this. It’s a mindset problem, our generation is fidgety, and impatient. I have a rule of max Rs. 1000 profit/gain, either met, leave the system for the day,” one of the comments read.

Shared two days ago, the post has garnered over 2,00,000 views, along with more than 1,000 likes