🧭 Why Structured Investing Beats Derivative Trading
Last week, we had an insightful conversation with a senior corporate executive referred by one of our clients. As part of our onboarding process, we always begin with a discovery exercise to understand money habits, past experiences, and overall comfort with different investment approaches.
During this conversation, he shared a painful experience: significant losses in equity trading — particularly in derivatives.
This immediately reminded us of the SEBI-mandated risk disclosures, which highlight some hard truths 👇
- 📉 9 out of 10 individual traders in equity F&O incur net losses
- 💸 The average annual loss per trader is around ₹50,000
- 🧾 Even profit-making traders lose 15–50% of their profits in transaction costs
These statistics are concerning. Yet, many investors continue to trade without fully understanding the long-term impact on their wealth creation journey.
🌱 Step 1: Shift the Focus to Clear Investment Objectives
In our discussion, we moved the conversation away from short-term trading and towards a more meaningful path:
- Understanding his investment objectives
- Assessing his comfort with risk
- Building a disciplined, long-term investment journey
We believe that wealth creation does not need to involve constant stress or taking on unfavourable odds. It can follow a structured and consistent approach that provides clarity and confidence over time.
📊 Step 2: Recognize that Wealth Creation is Built, not Gambled
It is easy to get caught up in the thrill of trading or the promise of quick wins. However, the reality is that long-term wealth creation is achieved through discipline, consistency, and a structured approach to investing.
By focusing on clear objectives and staying committed to a disciplined path, investors can work towards their goals without depending on speculative trading or short-term market movements.
🚀 Step 3: Reassess Your Investment Strategy
If your current approach relies heavily on trading, it may be worthwhile to pause and reassess. Ask yourself:
- Are your strategies aligned with your long-term objectives?
- Are you taking risks that you fully understand?
- Do you have a structured investment path that allows for steady compounding over time?
Sustainable wealth creation is not about trying to beat the market every day — it is about making consistent, disciplined decisions that stand the test of time.
💬 Join the Conversation on LinkedIn
We originally shared this story on LinkedIn, where it generated meaningful discussions among investors and professionals.
👉 Read and engage with the original LinkedIn post here to share your perspective or see what others are saying.
We welcome your thoughts — whether you have faced similar experiences in trading or are exploring structured investing approaches.
✅ Key Takeaway
Trading may offer excitement, but structured investing offers stability and discipline.
With the right approach and consistency, investors can work towards building long-term wealth without depending on short-term market speculation.
Vikas Sharma, CFP®, is a first-generation purpose-driven entrepreneur with over 19 years of experience in financial services, personal finance, and the advisory space. He is a Certified Financial Planner, an IIM Calcutta Executive Alumni, and holds an MBA in Finance and a Postgraduate qualification in Financial Planning.
Currently, Vikas is the Co-Founder & CEO of The Logical Advisor (TLA Academy Pvt. Ltd.) and Goalchi Capital Solutions LLP, where he integrates life, purpose, values, and money to create meaningful financial journeys.
He has worked with a leading Asset Management Company, mentored 1,500+ IFAs and Relationship Managers across India, and educated 10,000+ investors through Financial Wellness programs. His work has consistently focused on reshaping advisor and investor behaviour to enable sustainable success.
Vikas also coaches and mentors financial advisors nationwide, helping them build purposeful and successful careers.
