A story about risky trading and big losses recently made waves on social media. Roshan Agarwal, an accountant, shared a cautionary tale on X (formerly Twitter) about a young college student who lost a huge amount of money trading stocks.
Agarwal explained that he filed taxes for a third-year engineering student who lost 26 lakh rupees (about $31,000) this year alone. What’s shocking is that the student had zero income. Even worse, this wasn’t the first time. Last year, the same student lost about 20 lakh rupees ($24,000). In total, that’s 46 lakh rupees (about $55,000) gone in just two years.
The accountant said he tried to talk the student out of this risky trading last year. He advised against looking for quick money through a type of trading called Futures and Options (F&O). The student seemed to listen at first. But to Agarwal’s surprise, the young man came back this year with even bigger losses.
When Agarwal asked why he kept trading despite the huge losses, the student’s answer was worrying. He said he felt addicted to trading and couldn’t quit. This shows how dangerous and addictive this kind of trading can be, especially for young, inexperienced people.
Many people wondered how a student with no income could afford to lose so much money. Agarwal shared some concerning details. He said the student likely got money through personal loans, borrowing from friends, and even taking money from his parents’ accounts without their knowledge. This reveals a dangerous pattern of risky financial behavior and potential deception.
Agarwal pointed a finger at social media influencers, especially those focused on finance (sometimes called “finfluencers”). He criticized how these influencers make quick money look glamorous. They often show off fancy lifestyles and claim their success comes from trading. But Agarwal says this is misleading.
“On social media, you only see profits,” Agarwal explained. “You never see traders talking about their losses.” He believes young people are easily influenced by these social media creators. Some even sell courses on how to trade, promising quick riches.
The accountant strongly advises regular people to stay away from F&O trading. He warns that “get-rich-quick” schemes are dangerous traps. Agarwal compared trading in F&O without proper knowledge to playing with fire. “You will surely burn your hands in the end,” he said.
To back up his point, Agarwal shared some eye-opening statistics. According to data from a popular trading platform, 99% of F&O traders get less than 7% returns. That’s even less than what you’d get from a regular bank deposit.
So why do people, especially young folks, get drawn into this risky trading? Agarwal explains that they see influencers on social media platforms like X and Telegram sharing screenshots of huge profits. These influencers often show off lavish lifestyles, making it seem like anyone can get rich quick through trading.
But Agarwal stresses that it’s not that simple. He says it’s crucial to learn the basics of F&O trading first. People should practice with small amounts of money and develop the right mindset before risking larger sums. “It’s a full-time job that people do casually,” he warns.
For those unfamiliar with F&O trading, here’s a simple explanation: It’s a type of financial instrument called a derivative. This means its value comes from another financial asset, like a stock. In F&O trading, you don’t have to buy the actual stock. Instead, you’re betting on how its price will change.
This story serves as a stark warning about the dangers of risky trading, especially for young, inexperienced investors. It highlights the need for financial education and caution when it comes to promises of quick wealth. The tale of this student’s massive losses reminds us that what looks like easy money on social media often hides a much riskier reality.