1. Statistical Realities & SEBI Regulatory Study
In accordance with regulatory advisories published by the Securities and Exchange Board of India (SEBI):
- 9 out of 10 individual traders in the equity Futures & Options (F&O) segment incur net financial losses.
- On average, loss-makers registered net trading losses close to ₹50,000 per person, alongside substantial transaction costs and brokerage fees.
- Over and above the net trading losses, loss-makers expended approximately an additional 15% to 28% of their net losses on transaction charges.
2. The Nature of Derivatives & Leverage
Futures and Options trading utilize leverage, meaning a small initial margin allows a trader to control a significantly larger contract position. While leverage can magnify gains during favorable market movements, it equally magnifies losses.
A minor adverse movement in the underlying index or stock can wipe out the entirety of invested margin capital within minutes.
3. Educational Simulations vs. Live Market Realities
The charts, historical simulations, paper trades, and backtesting exercises demonstrated within National Institute of Trading (NIT) programs operate in controlled environments.
Simulated results do not reflect actual live market execution realities such as:
- Slippage & Liquidity Gaps: Fast-moving gap-up or gap-down openings where stop-loss orders execute below anticipated limits.
- Psychological & Emotional Pressures: Fear, greed, and anxiety associated with real hard-earned money at risk.
- Broker Terminal Downtime: Unforeseen exchange outages, internet disconnects, or broker API glitches.
4. Absolute Disclaimer of Guaranteed Profits
National Institute of Trading makes ZERO promises, representations, or warranties regarding guaranteed income, fixed daily profits, or investment returns.
Past performance of any instructor, mentor setup, historical chart pattern, or demand-supply zone is no assurance or predictor of future profitability. Individual success depends on personal discipline, strict risk management, emotional control, and market conditions.
5. Mandatory Risk Management Protocol
As an educational academy, NIT strictly teaches disciplined capital conservation principles:
- Never risk more than 1% to 2% of total trading capital on any single trade setup.
- Always employ predetermined technical stop-loss orders before executing positions.
- Never trade with borrowed money, personal loans, or family emergency funds.