In one of our workshops, I met a participant who had paid for a Rs. 60,000 course to learn Futures and Options (FnO) trading in Delhi. He just graduated from college and ready to jump straight into FnO. I was puzzled and asked him why FnO? He said he had heard that people were earning big money there. That answer explains why so many newbies are rushing into derivatives today.
If you’ve ever seen the “Well of Death” at a fair, you know how it works. Motorcyclists ride at terrifying speeds along vertical walls, defying gravity. It looks thrilling, dangerous, and impressive. From the outside, it feels almost unreal. FnO trading feels exactly like that esp for many first time investors. Fast money. High adrenaline. And one small mistake away from a crash.
FnO trading allows you to control large amounts of stock with relatively small money. This is called leverage. It is the reason profits can be huge. But leverage is a double-edged sword. It magnifies everything. The same force that multiplies profits can multiply losses just as quickly.
Unlike long term investing, where mistakes may take time to show, FnO punishes errors immediately. A sudden market swing, a small miscalculation, or emotional decision making can wipe out months of savings in a single day.
The problem is not that FnO exists. The problem is the expectation with which people enter it. Futures and Options were originally designed for hedging and managing risks, not for beginners trying to create instant wealth. It is a skill. A skill that takes years to develop. A skill that demands discipline, emotional control, position sizing, risk management, and deep understanding of market behaviour. Even after years of experience, traders can still get it wrong. There are no guarantees.
Many beginners are entering after seeing screenshots of large profits on social media. What they do not see are the frequent losses, and the psychological pressure that comes with high volatility.
Early small wins often create overconfidence. Overconfidence increases position size. Increased position size increases risk. That is usually when the market delivers its hardest lesson.
If you are new to the markets, start by building foundations. Understand how equity investing works. Learn patience. Learn risk. Respect compounding.
There is strength in slow growth. Jumping into FnO expecting large sums of money quickly is misaligned expectation. The market rewards preparation.
Because in the deathwell, gravity always wins in the end.
Paweü Kayina
founder@moneybar.in
Wednesday, March 4, 2026