New Delhi, July 16 -- We hear a lot about the Securities and Exchange Board of India's (Sebi) finding that about 93% of all participants in the futures and options (F&O) market lose money. Given the peculiarities of the human mind, everyone seems sure that they will be among the 7% who are winners. In this belief lies a business opportunity for those offering derivative training courses. Of course, anyone who has a magic wand that can make 1% everyday in financial markets can turn Rs.1 crore into Rs.20,000 crore in five years and has no economic reason to sell you a course for a few thousand rupees.

But the point is not just that 93% lose money, it is who the losers and winners are. Sebi data is clear: those losing money are individuals ...