91% of traders lose money but this could be avoided by proper mentoring: Yuvraj Thakker

In an interview with ETMarkets, Thakkar said: “Over 91% of Investors/Traders lost money and this could have been avoided if there was proper mentoring,” Edited excerpts:

What is your view on global diversification in 2023? FIIs seem to be moving away from India and investing in other EMs and treasury amid higher valuations.
There could be several reasons for FIIs moving away and investing in other emerging markets and treasury. One possible reason is higher valuations of Indian stocks compared to opportunities in EMs.

Before concluding the reasons, we should also factor in political and economic conditions that could be influencing the sentiments. Through global diversification, an investor could minimize the impact of negative events in India.

In 2023, global diversification remains an important strategy for investors because it opens the gate to a wider range of opportunities and potentially achieves higher returns.

The only barrier to global investing for Indians is the 20% tax collected at the source of the money sent via LRS. Investors should calculate their gains over and above the interest lost on the TCS paid to the government.

What is your investment style amid volatility?
While volatility allows for many short-term opportunities that we give to our customers, I stick to my long-term diversified portfolio.

I review and rebalance my portfolio regularly and ensure that I have good-quality stocks and my portfolio is well-diversified.

As we enter FY24 – your key learnings from the financial year gone by?
StoxBox is a Value Broker, who charges only for research services. The platform fee and brokerage are zero. For a revolutionary offering like ours, it is pivotal to adapt ourselves to the changing market conditions. My key learnings this year have been:1. Financial Mentoring: Over 91% of Investors/Traders lost money and this could have been avoided if there was proper mentoring given to them on how to manage risks, how to plan trades, how to enter and exit a trade, and how to consume a research call

2. Increased retail participation: We are seeing a surge in retail participation. There is a huge demand for value brokers like us that give quality research with a simple-to-use transaction platform.

3. Impact of regulatory Changes: The Securities and Exchange Board of India (SEBI) has introduced several regulatory changes in the last financial year to improve transparency and investor protection.

Stock brokers need to be well-informed and adapt to these regulatory changes to remain compliant and maintain their competitive edge.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)