Access to the markets has definitely become easier—and that’s a good thing.
But in the name of offering huge discounts (almost zero brokerage), discount brokers like Zerodha, Groww, etc. have onboarded a massive number of individuals.
Now all these individuals are exposed to one of the greatest mysteries of all time: the stock market.
It’s perfectly fine to invest in mutual funds, and even in stocks (though honestly, most retail investors would probably do better sticking to MFs). The real problem starts when a so-called “investor” tries their hand at short-term trading—which is basically gambling for most people.
The daily ups and downs of prices create an illusion that big money can be made easily. Many fall prey to hindsight bias and start believing they’re good at trading, whereas trading is like any other profession—if not more dangerous than most.
Why do I say this? Just look at the sheer number of coaching classes and financial influencers the Indian markets have produced post-COVID, right when these discount apps started gaining traction. Even housewives who are otherwise idle feel the FOMO.
This has also induced a sense of greed among common people. Everywhere you look—Reddit, Instagram—someone seems to be making huge sums of money. But the reality is very different. As per Zerodha themselves, around 95% of traders end up making losses.
So my question to you is: how many of you were introduced to the markets because of these discount brokers, and how has your journey been so far?
I’d genuinely like to hear real stories—losses, lessons, or even someone who made a life-changing amount.