External Forces Manipulate Retail Traders: Hidden Data
Table of Contents (External Forces Manipulate Retail)
External Forces Manipulate Retail Traders: Hidden Data
If you’re a retail trader, this article will show you how external forces manipulate your decisions—and how you can break free.
The numbers don’t lie: SEBI’s 2023 report revealed 89% of Indian F&O traders lost money, averaging ₹1.1 lakh/year in losses.
Here’s what you’ll walk away with:
- A behind-the-scenes look at who profits when you lose.
- Three market traps designed to exploit retail emotions.
- One strategy to avoid being a pawn in the high-frequency casino.
A Market Built on Misdirection
Retail participation is surging in India. But there’s a troubling pattern: over 90% of active traders are being herded toward derivatives—products they barely understand.
Meanwhile, in the U.S., only 25% of retail traders go near options or futures. The contrast is staggering—and intentional.
The Illusion of Participation: India vs. the U.S.
| No | Country | Retail in Derivatives | Total Retail Market |
|---|---|---|---|
| 1 | India | 90% | Low |
| 2 | U.S. | ~25% | High |
So why the aggressive push toward F&O in India? Follow the money.
Who Profits from Retail Derivatives Trading?
- Brokers earn up to 18x more from derivative trades than from equity delivery.
- Exchanges collect 4x more fees from F&O than equity.
- Margin Interest adds a further 10 – 24% annual revenue to broker profits.
You’re not being guided toward opportunity — you’re being nudged toward a profit center that doesn’t benefit you.
The Playbook of Subtle Manipulation
- Low margins = high risk-taking = more trades = more commissions.
- Weekly expiries = more action, more churn.
- App design & notifications make trading feel like gaming.
- Finfluencers glorify F&O with selective screenshots.
- Exchanges stay silent while retail pays the price.
There’s no evil mastermind—just a system optimized for extraction.
SEBI’s Wake-Up Call: Retail Traders Are Losing
In 2023, SEBI dropped a bombshell:
- “89% of individual traders in the equity F&O segment incurred losses with an average of ₹1.1 lakh per losing trader.”
Despite this, promotions of F&O across platforms have only increased. Is that investor protection—or investor exploitation?
What the Industry Won’t Tell You
Big players don’t rely on tips or trendlines—they rely on your emotions.
When you buy high on hope and sell low in fear, you’re just feeding the machine.
This is not a behavioral issue. It’s a systemic design flaw.
Reclaiming Control with Strategy Over Speculation
You don’t need to swear off trading—but you do need to trade with clarity.
Consider methods like the Stressless Trading Method (STM) that:
- Replace stop-loss panic with structured recovery ladders.
- Simulate outcomes without risking capital.
- Focus on risk absorption, not exposure.
STM doesn’t promise jackpots—it promises emotional peace and strategic consistency.
Conclusion: It’s Not a Conspiracy—It’s Business
The retail trader isn’t the villain. They’re the fuel.
This market isn’t broken—it’s built this way.
If you want to survive and thrive, don’t fight the system—learn to trade around its traps.
Trade Smart, Not Fast
Ready to step off the emotional rollercoaster?
Explore how the Stressless Trading Method inside the KOSH App by Dozen Diamonds can shield you from external forces and let you trade with strategy—not stress.
👉 Get started with STM in the KOSH App today.