Risk Communication Importance - Mandatory risk communication is crucial in the financial world to ensure customers understand potential risks before investing [1] - Current risk disclosures are often too fast and use complex terms like "market risk" and "offer document" that many investors don't fully understand [4] - The financial industry should consider implementing warnings similar to those on cigarette packaging, such as displaying loss statistics on trading apps [7] Financial Market Realities - 93% of futures and options traders experience losses [5] - 70% of investors in the equity space are in losses [5] - Only 1% of active traders earn more than fixed deposit interest rates, which are often lower than inflation, reducing purchasing power [6] Proposed Solutions & Examples - Stock market apps could display messages like "7 out of 10 users had losses today" or "This is not passive earning, it's active stress" before a user buys [7] - The "Mutual Fund Sahi Hai" campaign effectively used humor and social media to educate people about mutual fund investments [8] - Zerodha's Varsity platform educates users about trading risks and offers mock trading to gain experience before investing real money [9] Call to Action - Risk communications should be as visible as reward communications [11] - The goal is to make investors think twice before investing, similar to how cigarette warnings make smokers think twice [11] - The Indian traders need systemic clear guidelines and risk communications to make them think twice before they invest into the markets [13]