The last few years have seen a proliferation of countless self-proclaimed trading gurus who shot to fame by claiming unrealistic profits on social media. It's a classic enticement to lure innocent people into the "Get Rich Quick" schemes. Before you know it, they're making their followers pay for expensive webinars and courses. They repeatedly flaunt fake and exaggerated market-to-market (MTM) screenshots, further stimulating the greed among the unsuspecting public.
Undoubtedly, the massive wave of trading influencers across social media has made it challenging for inexperienced people to segregate between genuine and non-genuine traders.
Likewise, in the case of Aman, a 22-year-old guy hailing from Bangalore, who decided to learn to trade online through various social media platforms. By relying on the fake profits shown, he subscribed to a stock market channel on YouTube. Unfortunately, the strategies suggested didn't work out well and resulted in trading capital loss. In the process, he also incurred hefty course fees, which enriched the fake trading guru. Aman is just one example of a generation of inexperienced investors who've gone through this in recent times.
We despise such manipulative practices and think it needs to stop! At an event in December 2022, a few customers asked us to create a mechanism to authenticate the P&L posted by our clients in the public domain. As we had resolved to do it, we launched Verified P&L to establish authenticity and prevent people from being fooled by charlatans.
What is Verified P&L?
Verified P&L provides access to a trader's 100% accurate P&L as the data flows directly from us. Our clients can share their personal verified P&L links with just a few clicks. This is possible only if you're our client. Click here if you wish to open an account with us.
Below is a list of points to initiate the process of verification:
- Go to the My Account portal and click on Verified P&L.
- The landing page displays the option to choose the time-period. You can select daily, weekly, monthly, or custom timeframe P&L. Also, you can choose to display trading positions in five segments, i.e., F&O (Futures and Options), Equity, Commodity, Currency, and Mutual Funds. By default, the page shows the first five trades of all segments.
- Towards the right side of the page, there is a tab showing the profit summary (Unrealized and Realized) earned within the specified period. Realized profit shows the profit booked during the specified period, and Unrealized profit is an accurate depiction of the accrued profit on the open positions.
- Click on the Share P&L button. It will take a snap with P&L history along with a time stamp. Also, it will create a public URL.
- You can share the URL with the thumbnail (automatically generated with the URL).
- Anyone who wishes to authenticate the accuracy of the trader can click on the URL/thumbnail and be redirected to the FYERS page to see the P&L report for the selected time stamp and segments.
For instance, Rahul chose to share his P&L via the FYERS platform. He can publish the URL. Reena, an avid learner, and trader who wished to check the authenticity of the profits shared by Rahul, clicked on the link. She could view the profit and loss report for specified segments at the time of sharing. Click here to learn the step-by-step process of sharing a verified P&L.
What makes it beneficial for traders and investors?
Enhanced Authenticity of Data
Young participants in the market space often get swayed by the manipulated profits figures published by deceitful persons. Also, the ease of access to various social media platforms led to the emergence of trading influencers duping users with fake tips and glorified strategies. With Verified P&L, it is now possible to virtually gauge the traders' authenticity. With accessibility to shared verified P&L via the FYERS platform, people can see the actual status of profits and losses and assess the source's credibility.
Considering the increased risk of digital fraud, verified P&L only shares a snapshot of the profits and losses made in a specified period, which are not live-shared. This means that any outsider will not be able to get access to your traded positions or orders placed. This tool is well-designed to protect trading accounts against breaches. The verified P&L shared will have the URL - verifiedpnl.fyers.in/xxxx.
What makes it trustworthy?
Now you have seen that traders can share a day, weekly, monthly, and Custom P&L, but it cannot bifurcate between profitable and non-profitable days. For instance, if you share a weekly P&L on Friday, the actual data from Monday to Friday will be shared.
With this condition, you can quickly assess the authenticity of shared data. Also, we encourage traders to share verified P&L consistently to emerge as a credible source in the market.
Verified P&L may not showcase a trader's aggregate historical performance data. People do tend to show their best performance to the public. So, don't judge a book by its cover! Please note that people can take screenshots and edit the P&L results on photo editing apps, so do not trust any screenshots of the verified P&L on social media. Also, note that Verified P&L will be impacted by the following:
- The unrealized P&L of pledged securities
- The holdings that have undergone corporate actions such as BuyBack, Dividend, Merger, De-Merger, etc.
- The P&L of the holdings transferred from other Demat Account/s (applies to both FYERS and Non-FYERS Clients) to your FYERS Demat account.
- The Equity buy average are calculated using the First-In-First-Out (FIFO) method. For more details, refer to this article.
Please note: Verified P&L is just a yardstick to assess the authenticity based on authenticated P&L report (Based on the publisher's preferences). However, it doesn't capture the qualitative aspects such as risk-adjusted returns, portfolio turnover, hit rate etc.
Over to You
With the enormous surge in trading volumes over the last few years, it's essential to prevent young and inexperienced investors from getting deceived. This is our little way of trying to add value to them. We hope that it helps precipitate a virtuous cycle of genuine information sharing among trading enthusiasts around the country.