By Irshad Mushtaq
The Indian stock market delivered a strong performance on November 5, 2026, with the Nifty rising 576 points, or 2.40%, to close at 24,536.60. The Sensex gained 2,008.61 points. Falling crude oil prices, renewed foreign-investor buying and improving global sentiment helped drive the advance.
For investors, such sessions bring relief and renewed confidence. But they also raise an important question: should a rising market encourage more short-term trading, or remind us of the value of staying invested through a disciplined plan?
The answer deserves more attention than the day’s headline gains. Patience, supported by research and sensible risk management, is very different from chasing prices in the hope of making quick money.
Why the Market Rose
The rally reflected a combination of domestic and international developments. Lower crude oil prices eased concerns about India’s import bill, inflation and business costs. Foreign investors also returned as buyers, purchasing approximately ₹7,284 crore of Indian equities on November 4—their fourth consecutive net-buying session. Improving global sentiment provided additional support.
These developments encouraged investors to reassess risk and increase their exposure to equities. However, a strong session does not establish that every stock is attractively priced or that the next trading day will also deliver gains.
The more useful question is not, “How much can I make tomorrow?” It is, “Does my investment approach suit my goals, time horizon and capacity to bear losses?” These considerations sit at the centre of SEBI’s investor-education guidance.
What SEBI’s Data Tells Us About Intraday Trading
The appeal of intraday trading is easy to understand: enter a position, capture a price movement and close it before the day ends. The official evidence, however, shows that making money consistently is difficult.
SEBI’s July 2024 study found that 71% of individual intraday traders in the equity cash segment incurred losses during FY2022–23. Among traders who executed more than 500 trades annually, the proportion of loss-makers rose to 80%.
These findings challenge the belief that greater activity necessarily produces better results. More trades may create more opportunities, but they also create more occasions to incur costs and make mistakes.
The study also found that loss-making intraday traders incurred trading costs equal to an additional 57% of their trading losses. Such costs can significantly deepen the damage to a trading account.
Intraday Trading and F&O Must Not Be Confused
Public discussions often combine cash-market intraday trading with futures and options. The distinction matters.
The intraday figures above concern buying and selling shares within the same trading day in the equity cash segment. SEBI’s derivatives studies examine a different category of activity, involving futures and options.
According to SEBI’s August 2026 study, 91% of individual equity-derivatives traders incurred net losses across FY2025–26 combined, with aggregate net losses of approximately ₹2.03 lakh crore. These figures should not be described as intraday-only losses.
The distinction strengthens, rather than weakens, the central message: investors need to understand the product, its risks and the evidence before committing their savings.
Why Frequent Trading Can Damage Wealth
Frequent trading creates a continuing burden of transaction costs. A trader must earn enough not only to offset losing trades but also to cover the expenses associated with repeated buying and selling. SEBI’s intraday findings demonstrate how substantial that burden can become.
Derivatives introduce further complexity. Leverage can magnify the financial impact of market movements, while options operate within an expiry period. A view about the market’s eventual direction may therefore be correct without producing a profitable trade. SEBI’s latest study reported that options accounted for 92% of aggregate individual derivatives losses in FY2025–26.
For households investing towards education, retirement or other essential goals, this evidence is a reason for caution. Trading should not be mistaken for a dependable salary, nor should a few profitable transactions be treated as proof of a sustainable strategy.
What a Quality Portfolio Should Mean
A quality portfolio is not simply a collection of popular shares or companies that performed well recently. It should reflect informed selection, diversification and a suitable balance between potential returns and risk.
SEBI’s investor guidance emphasises understanding investments, assessing risk tolerance, choosing an appropriate time horizon and avoiding excessive concentration. It also highlights the role of asset allocation and diversification in managing risk.
The objective is to build an approach that can serve a financial goal—not to win every trading session.
For an ordinary investor, this means researching before investing, avoiding decisions based solely on tips, and ensuring that money required for near-term needs is not exposed to unsuitable market volatility.
Patience Is Not Blind Holding
There is an equally important warning: long-term investing does not guarantee profits.
A company’s prospects can weaken, an investment can become unsuitable, and a portfolio can become too concentrated. Holding an investment for years does not automatically make it safe. SEBI cautions that investment returns are not guaranteed and that diversification cannot eliminate all risks.
Patience must therefore be accompanied by periodic review. Investors should distinguish between temporary price volatility and a meaningful deterioration in the reasons for owning an investment.
A disciplined investor does not react to every market movement—but neither ignores evidence that the original investment case has changed.
Conclusion: Build a Plan, Not a Habit of Constant Trading
Today’s rally offers encouragement, but it should not become an invitation to speculate with essential savings. The stronger lesson comes from placing the market’s gains alongside SEBI’s evidence: a rising index and a profitable trading account are not the same thing.
For investors pursuing long-term goals, the priority should be an informed plan, suitable diversification, manageable risk and regular review. These are more useful foundations than the pressure to make money every day.
The market will always offer another price movement. The investor’s responsibility is to decide which opportunities genuinely belong in a financial plan—and which are better left alone.
Irshad Mushtaq | Since 2004
Financial Education & Market Insights
Disclaimer: This article is for educational and informational purposes only. It does not constitute personalised investment advice or a recommendation to buy or sell any security. Investments in securities markets involve risk, including loss of capital. Historical findings do not determine an individual’s future outcome. Readers should consult a SEBI-registered investment adviser for advice suited to their circumstances.
