Stopping SIPs in downturns weakens long-term compounding, rupee-cost gains

Chasing past performance ignores the principle that returns of all assets are mean-reverting

Markets offered opportunities in 2025, but many investors struggled as decisions were driven by speed, noise and emotion rather than understanding. From chasing hot themes and speculative trades to stopping Systematic Investment Plans (SIPs) during volatility and following unverified advice, behaviour often proved costlier than market movements.

As investors step into 2026, the lesson is clear: Successful investing depends more on discipline than speed. Experts point to key mistakes made in 2025 and outline how investors can avoid repeating them.

Losses in F&O segment

A recent report by the Securities and Exchange Board of India (Sebi) showed that individual traders suffered net losses of about Rs 1,05,603 crore in the futures and options (F&O) segment in FY25. Sebi and market experts attribute the widening losses to speculative trading by largely inexperienced investors. High leverage, transaction costs and volatility — especially around expiry days — combined to magnify losses.

Precautions to take in F&O trading

Excessive leverage remains the most damaging mistake in F&O trading. “Small margins can control large positions, but even minor price moves or time decay can wipe out capital quickly. Trading without strict position sizing, stop-loss discipline, or a clear exit plan almost guarantees losses. Chasing tips, reacting to intraday noise, or assuming frequent trading improves outcomes are equally damaging habits,” says Arun Patel, founder and partner, Arunasset Investment Services.

Incentives also play a role. “Much of today’s F&O participation is nudged by platforms that profit from high turnover. Notifications, rankings and ‘easy trade’ narratives create overconfidence,” says Patel.