You must have also seen and heard that retail investors prefer penny stocks and multibagger stocks. There has been a long standing belief that retail investors are crazy about penny stocks and multibagger stocks. However, stock market data presents a different picture.
13 years of Google Trends data
Data shows that during the last 13 years, Indian retail investors have shown more interest in multibagger stocks. Appeared in options trading. The stock options derivative market has grown tremendously in the last few years. Retail investors have contributed significantly to this growth. Mint has given this report quoting Google Trends data from the year 2009 to 2023.
Increased interest due to these reasons
Rapid emergence of online retail trading platforms in recent years. Has happened. In view of this, the stock markets have made some changes in the options contracts, so that they can be traded easily and quickly. After that, there has been a tremendous surge in derivatives trading i.e. future and options trade. Data from October 2009 to December 2019 show that in these 10 years, retail investors have shown more interest in options trading than in multibagger shares.
So much interest in stock options
According to Google Trends. According to statistics, currently the average interest level in stock options is at 75 percent. Whereas the average interest of retail investors in multibagger shares is 25 percent. This is the situation when the average interest has decreased recently. At one time after 2019, the average had reached 100 percent.
This trade is very risky
Derivatives trade i.e. future and options trading is considered very risky. There is a lot of risk in this trading. In this, investors get a chance to earn big money in a short time, but the risk of drowning is greater. Currently, most retail investors lose money in F&O. For this reason, authorities and regulators have paid special attention these days to warning retail investors about the dangers of options trading.
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