A strategy can be directionally correct and still lose money because the investor measured the chart, not the complete transaction cost.
Compare the expected edge per trade with the all-in cost and the probability of execution at the assumed price.
Download every contract note.
Contract notes.
Using brokerage alone as total cost.
Contract notes separate brokerage and statutory or exchange levies. The applicable rates and tax treatment can change, so investors should use the current broker calculator and actual contract note rather than an old social-media table.
Bid–ask spread is an economic cost even when it does not appear as a fee. In less liquid strikes, entering at the offer and exiting at the bid can consume a large part of the expected profit.
Slippage increases around volatile events, stop-loss clusters, opening gaps and expiry. Back-tests using midpoint prices can materially overstate executable returns.
| Area | What to assess | Investor rule |
|---|---|---|
| Visible charges | Brokerage and stated statutory levies. | Reconcile to contract note. |
| Spread | Difference between best bid and offer. | Prefer liquid contracts. |
| Slippage | Difference between expected and executed price. | Stress-test volatile periods. |
| Tax record | Business-income and reporting consequences. | Maintain complete books and advice. |
Express every strategy in net expectancy: probability-weighted gain minus probability-weighted loss minus all-in cost. If the edge is smaller than ordinary execution variation, it is not robust.
Review cost as a percentage of gross profit and capital at risk. A low rupee fee can still be large relative to a small expected payoff.
The investor should record the product, entity, amount, expected return source, maximum credible loss, liquidity, cost, holding period and exit route before transferring money. A decision that cannot be explained without a price target or influencer claim is not yet an investment thesis.
Regulations, product terms, charges, taxes and complaint procedures can change. Use the latest official document and the investor’s actual statement rather than an old screenshot or generic online table.
First verify the legal entity and regulated role. A familiar brand, app-store listing, social-media badge or celebrity does not prove that the person receiving money is the registered intermediary.
Second verify the money and asset trail. Payment should move through the appropriate regulated account, and the investment should appear in an independent contract note, depository statement, folio record or lawful product report.
Third compare return with the risk that produces it. High yield, rapid profit, leverage, illiquidity, concentration and complex valuation are not separate from return; they are often the reason the expected return looks attractive.
Fourth preserve evidence. Statements, product documents, risk disclosures, communications, ticket numbers and complaint acknowledgements should be stored outside the app or platform being disputed.
Finally, separate a disappointing market outcome from fraud, mis-selling, unauthorised activity or service failure. The correct complaint route and available relief depend on that distinction.
The review should use the same transaction or holding population across all evidence. For this topic, the main areas are visible charges, spread, slippage, tax record. If the app, contract note, depository statement, factsheet and tax record describe different positions, the investor should resolve the difference before taking another action.
Suitability has two layers: product risk and household capacity. A product can be lawful and accurately disclosed yet still be unsuitable for money needed for education, emergencies, near-term housing or debt repayment.
The investor should separate price volatility from permanent loss. Temporary market movement, issuer default, fraud, forced sale, liquidity failure and excessive cost require different controls and complaint routes.
Every review should end with a written action: hold with a stated reason, reduce concentration, seek clarification, stop further transfers, preserve evidence or escalate through the regulated entity and official platform.
Use net expectancy rather than win rate. A strategy can win frequently and still lose money when occasional losses, slippage and statutory charges are larger than routine gains.
Leverage should be stress-tested for overnight gaps and unavailable liquidity. Margin shown by the broker is a minimum operational requirement, not a measure of safe economic exposure.