Tanisha Singh is getting ready for work early one morning and cooking a simple curry for her lunchbox when she realises she's out of tomatoes
World

Tanisha Singh is getting ready for work early one morning and cooking a simple curry for her lunchbox when she realises she's out of tomatoes. Onions are already frying in the pan. Going out to buy vegetables is not an option, as local vegetable vendors won't be open

Pakistan's plans for the T20 World Cup 2026 has been leaked in a deleted whatsapp message in the Pakistan Cricket Board's (PCB) media group consisting
Sports

Pakistan's plans for the T20 World Cup 2026 has been leaked in a deleted whatsapp message in the Pakistan Cricket Board's (PCB) media group consisting journalists across the globe. The incident took place on Friday, when a member of the PCB media team revealed their T20 World Cup 2026 plans along

<strong>Bodoland Lottery Results Today 31 January 2026 Live: The Assam Bodoland Lottery Department will declare its results today at 3 PM
Latest News

Bodoland Lottery Results Today 31 January 2026 Live: The Assam Bodoland Lottery Department will declare its results today at 3 PM. Participants can view their results at bodollotteries.com, the official website, scroll down for more details.Bodoland Lottery Results Today 31 January 2026 Live: The

A landslide earlier this week collapsed several mines at a major coltan mining site in eastern Congo, leaving at least 200 people dead
Latest News

A landslide earlier this week collapsed several mines at a major coltan mining site in eastern Congo, leaving at least 200 people dead, rebel authorities said Saturday. The collapse took place Wednesday at the Rubaya mines, which are controlled by the M23 rebels, Lumumba Kambere Muyisa

Google says it has disrupted and removed domains belonging to IPIDEA, which is considered one of the biggest malicious networks in the world
Technology

Google says it has disrupted and removed domains belonging to IPIDEA, which is considered one of the biggest malicious networks in the world. The company says it disrupted a proxy network that was used by bad actors to hijack millions of computers and phones to create “secret tunnels”

Zerodha's Nithin Kamath shares a key takeaway from commodity market rout

Posted By: Hemant Kumar Posted On: Jan 31, 2026Share Article
Zerodha's Nithin Kamath shares a key takeaway from commodity market rout
According to Zerodha's founder and CEO, Nithin Kamath, this commodity market crash has a key lesson for investors: trade only with money you can afford to lose

Gold, silver crash up to 30%: Zerodha's Nithin Kamath shares a key takeaway from commodity market rout

The commodity markets were in a chaotic situation on January 30 when most major metals hit lower circuits- silver crashed 30% and gold plunged 15%. According to Zerodha's founder and CEO, Nithin Kamath, this commodity market crash has a key lesson for investors: trade only with money you can afford to lose because when markets gap through circuits, there are no margin calls, no exits, and no second chances.

Sharing his views on the social media platform X, Kamath highlighted that there are rare days when risk management doesn't work due to the markets' violent moves. That's when traders lose more than their entire initial margin, and both the trader and the broker feel helpless with no way out.

Giving an example of a commodity market crash on Friday, Kamath emphasised that what happened in commodities on that day can happen in equities too. It was seen in the year 2008, the year of the global financial crisis.

Does risk management always work?

For traders, risk management measures, such as position sizing, stop-losses, margins, and diversification, are the first line of defence.

However, there are rare days when even the best-laid safeguards collapse under the sheer force of market volatility.

When markets move violently and gap through circuit limits, traditional risk controls stop working. Stop losses become meaningless because there is no liquidity at intermediate prices. Margin requirements are breached instantly, and losses can exceed the trader's initial capital.

History has such examples: crude oil prices turned negative during the COVID-19 crisis; in 2008, global equity markets experienced sudden, severe collapses.

As Kamath says, the key lesson from episodes like these is that only trade with money you can afford to lose.

"The lesson is simple but critical: only trade with money you can afford to lose. You can trade successfully for a decade and lose it all in a single day if you're not properly managing risk. There's no margin call, no exit opportunity when markets gap through circuits like this," Kamath wrote.

However, Kamath's statement should not be seen in the context of undermining the importance of risk management.

Risk management is essential—but it is not a guarantee. Extreme events will always exist. Respecting that reality is what separates speculation from sustainable participation in financial markets.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

Comment on Post

Leave a comment

If you have a News Orbit 360 user account, your address will be used to display your profile picture.


<strong>Pisces February 2026 Monthly Horoscope:</strong> Unlock your Monthly Horoscope with expert predictions on career, finance, health, love
Life Style
Pisces February horoscope

Pisces February 2026 Monthly Horoscope: Unlock your Monthly Horoscope with expert predictions on career, finance, health, love, family, and life. See what the stars hold this month! Pisces February 2026 Monthly Horoscope: As February unfolds with powerful celestial shifts

Just now

Security forces are investigating bomb threats targeting Dera Sachkhand Ballan and two schools in Jalandhar. The threats were received on Saturday
World
Bomb threats received for Dera Ballan

Security forces are investigating bomb threats targeting Dera Sachkhand Ballan and two schools in Jalandhar. The threats were received on Saturday, a day before Prime Minister Narendra Modi's scheduled visit to the Dera for Guru Ravidas Jayanti

Just now

The Ayush Mhatre led side holds the strongest position with 6 points and a massive Net Run Rate (NRR) of +3.337. The pinnacle of cricketing rivalries moves to
Sports
How to watch India vs Pakistan U19 clash as they face off for final SF spot

The Ayush Mhatre led side holds the strongest position with 6 points and a massive Net Run Rate (NRR) of +3.337. The pinnacle of cricketing rivalries moves to the youth stage as India and Pakistan prepare to battle in the Super Six stage of the 2026 ICC Under-19 World Cup

Just now

Veteran actress Kalpana Iyer, famously known as the OG
Life Style
OG ‘Ramba Ho Ho Ho’ girl Kalpana Iyer recreates iconic dance- WATCH

Veteran actress Kalpana Iyer, famously known as the OG "Ramba Ho" girl, has gone viral for recreating her iconic dance at a family wedding. New Delhi: Veteran actor and dancer Kalpana Iyer, who featured in the iconic song Ramba Ho Ho Ho sung by Usha Uthup and composed by Bappi Lahiri

Just now

With the Trump administration amping up scrutiny of H-1B visa applicants, the US consulates in India have reportedly extended visa stamping interview
Latest News
What's best to do in waiting period

With the Trump administration amping up scrutiny of H-1B visa applicants, the US consulates in India have reportedly extended visa stamping interview appointments until 2027. Several reports claimed that no slots are available till next year at the visa offices in Delhi, Mumbai, Chennai, Hyderabad

Just now

India's space agency ISRO is preparing for the first uncrewed Gaganyaan mission. This is a vital step towards sending astronauts into space by 2027
Science
Countdown to Gaganyaan

India's space agency ISRO is preparing for the first uncrewed Gaganyaan mission. This is a vital step towards sending astronauts into space by 2027. Three uncrewed flights are planned before the human spaceflight. ISRO is rigorously testing all systems to ensure astronaut safety

Just now

Andhra Pradesh Finance Minister Payyavula Keshav alleged that previous government suppressed reports indicating animal fats in TTD ghee
Politics
Andhra Minister debunks YSRCP's claims that ghee supplied to TTD not adulterated with animal fat

Andhra Pradesh Finance Minister Payyavula Keshav alleged that previous government suppressed reports indicating animal fats in TTD ghee. He stated that samples sent to NDDB and CFTRI revealed adulteration, with a Special Investigation Team estimating the fraud at Rs 240 crore

Just now

Carlos Alcaraz is on the cusp of becoming the youngest man to achieve a career Grand Slam, a feat that would surpass Rafael Nadal. The driven 22-year-old
Sports
Rare tennis talent with shades of Federer

Carlos Alcaraz is on the cusp of becoming the youngest man to achieve a career Grand Slam, a feat that would surpass Rafael Nadal. The driven 22-year-old, inspired by Roger Federer, faces Novak Djokovic in the Australian Open final, aiming to etch his name further in tennis history

Just now

<strong>Tech gadgets:</strong> The first step to clear tech clutter is to sort everything. Separate gadgets that still work from those that are
Technology
Drawer full of old tech gadgets

Tech gadgets: The first step to clear tech clutter is to sort everything. Separate gadgets that still work from those that are broken. Devices like old phones or tablets that are in working condition can be reused, donated or sold. Tech gadgets: You are not alone if your drawer is also full of old

Just now

Kerala's Class 10 syllabus will be reduced by 25 percent starting next academic year. This decision follows student feedback on heavy workloads
World
Kerala to reduce Class 10 syllabus by 25 per cent

Kerala's Class 10 syllabus will be reduced by 25 percent starting next academic year. This decision follows student feedback on heavy workloads. The curriculum committee has approved the change. The content of textbooks will remain the same. The announcement was made by Education Minister V

1 minutes ago

Fitness technology company Peloton Interactive Inc. has reduced 11% headcount, with majority job cuts coming from engineering teams amid cost-cutting measures
Business
Headcount reduced by 11%

Fitness technology company Peloton Interactive Inc. has reduced 11% headcount, with majority job cuts coming from engineering teams amid cost-cutting measures, Bloomberg reported citing a source in the know. According to the source, Peloton's CEO Peter Stern, who took the role in 2025

Just now

On January 27, the Bulletin of the Atomic Scientists moved its Doomsday Clock to 85 seconds to midnight, the closest it has been to the metaphorical point of
Science
The Doomsday Clock shows the danger but not the way out

On January 27, the Bulletin of the Atomic Scientists moved its Doomsday Clock to 85 seconds to midnight, the closest it has been to the metaphorical point of global catastrophe. The Doomsday Clock is historically significant because it transformed the abstract

1 minutes ago

In an early morning press briefing held at Baramati on Saturday (January 31, 2026), NCP SP leader Sharad Pawar said that it was Ajit Pawar's wish for the two
Politics
No idea about Sunetra Pawar being sworn in as Maharashtra deputy CM

In an early morning press briefing held at Baramati on Saturday (January 31, 2026), NCP SP leader Sharad Pawar said that it was Ajit Pawar's wish for the two NCPs to reunite and that his party wished the same. He also said that he was unaware of Sunetra Pawar's swearing-in today

1 minutes ago

Daldal is a gritty psychological crime thriller released on January 30, 2026, on Amazon Prime Video. New Delhi: Bhumi Pednekar's Daldal premiered on Amazon
Entertainment
Is Bhumi Pednekar’s comeback worth watching

Daldal is a gritty psychological crime thriller released on January 30, 2026, on Amazon Prime Video. New Delhi: Bhumi Pednekar's Daldal premiered on Amazon Prime Video on Friday, January 30, and audiences have already delivered their verdict. The crime-thriller web series

1 minutes ago

The commodity markets were in a chaotic situation on January 30 when most major metals hit lower circuits- silver crashed 30% and gold plunged 15%
Latest News
Zerodha's Nithin Kamath shares a key takeaway from commodity market rout

The commodity markets were in a chaotic situation on January 30 when most major metals hit lower circuits- silver crashed 30% and gold plunged 15%. According to Zerodha's founder and CEO, Nithin Kamath, this commodity market crash has a key lesson for investors: trade only with money you can afford

1 minutes ago

India's services trade surplus surged to $188.8 billion, offsetting two-thirds of the merchandise trade deficit and highlighting the scale of its software-led
Technology
Services surplus cushions trade gap as software

India's services trade surplus surged to $188.8 billion, offsetting two-thirds of the merchandise trade deficit and highlighting the scale of its software-led services economy.Merchandise trade deficit refers to the gap that arises when a country's imports of physical goods exceed its exports of

Just now

San Jose (California) [US], January 31 (ANI): Moltbook, which describes itself as a Social Network for AI Agents and a forum where AI agents share, discuss
Technology
Social Network for AI agents- Moltbook goes viral

San Jose (California) [US], January 31 (ANI): Moltbook, which describes itself as a Social Network for AI Agents and a forum where AI agents share, discuss, and up-vote is drawing huge attention especially since the posts on the network come from AI Agents.San Jose (California) [US]

Just now

Kochi, Jan 31 (PTI) CSL on Saturday said Mumbai-based Polestar Maritime Ltd has placed an order for two 60-ton bollard pull battery-electric green tugs
Latest News
Mumbai-based Polestar orders two 60-ton green tugs from CSL

Kochi, Jan 31 (PTI) CSL on Saturday said Mumbai-based Polestar Maritime Ltd has placed an order for two 60-ton bollard pull battery-electric green tugs. In a release, the Cochin Shipyard Ltd said Polestar Maritime is a major player in the niche market of harbour tugs, coastal towing and assistance

1 minutes ago

Surat (Gujarat) [India], January 31 (ANI): Tiigers of Kolkata produced a statement performance in their eighth Indian Street Premier League (ISPL) fixture
Latest News
Tiigers of Kolkata clinch record-breaking win

Surat (Gujarat) [India], January 31 (ANI): Tiigers of Kolkata produced a statement performance in their eighth Indian Street Premier League (ISPL) fixture against Srinagar, cruising to a commanding 93-run victory after choosing to bat first, according to a release. In the process

1 minutes ago

Sri Lanka 133 all out (16.2 overs):</b> Kusal Mendis 37 (20); Rashid 3-19, Curran 3-38 England 125-4 (15 overs):</b> Salt 46 (35); Malinga 2-24
Sports
Curran takes hat-trick as England win first T20

Sri Lanka 133 all out (16.2 overs): Kusal Mendis 37 (20); Rashid 3-19, Curran 3-38 England 125-4 (15 overs): Salt 46 (35); Malinga 2-24 England won by 11 runs (DLS method); lead three-match series 1-0 Sam Curran took England's second ever hat-trick in T20 internationals as they beat Sri Lanka by 11

Just now

A major road accident occurred on the Agra Highway in the Jaswantnagar area of Etawah district when a double-decker bus carrying pilgrims overturned after the
World
Double-decker bus carrying pilgrims overturns on Agra highway

A major road accident occurred on the Agra Highway in the Jaswantnagar area of Etawah district when a double-decker bus carrying pilgrims overturned after the driver lost control of the vehicle. A major road accident occurred on the Agra Highway in the Jaswantnagar area of Etawah district when a

Just now

Newly released documents from the US Justice Department reveal filmmaker Mira Nair attended an afterparty at Ghislaine Maxwell's New York townhouse in 2009
World
Zohran Mamdani's mother Mira Nair named in Epstein files

Newly released documents from the US Justice Department reveal filmmaker Mira Nair attended an afterparty at Ghislaine Maxwell's New York townhouse in 2009. The email, sent by publicist Peggy Siegal, listed Nair among high-profile attendees like Bill Clinton and Jeff Bezos

1 minutes ago

Iranian ​President Masoud ‌Pezeshkian said ​on Saturday (January 31, 2026) that U.S. ​President Donald ⁠Trump
World
President ‌Pezeshkian says Trump

Iranian ​President Masoud ‌Pezeshkian said ​on Saturday (January 31, 2026) that U.S. ​President Donald ⁠Trump, Israeli Prime Minister ​Benjamin ⁠Netanyahu, and Europe ‌had ‌stirred tensions ‍in the recent ‍protests that gripped the

Just now

Former “Bigg Boss 19” contestant Nehal Chudasama says “The 50” is a true test of mental and physical strength
Entertainment
Bigg Boss 19’ fame Nehal Chudasama reacts to joining ‘The 50

Former “Bigg Boss 19” contestant Nehal Chudasama says “The 50” is a true test of mental and physical strength, where she aims to showcase honesty, determination, and resilience. Mumbai: Former “Bigg Boss 19” contestant Nehal Chudasama is all set to be seen in the

Just now

The US government entered a partial shutdown after Congress missed the 2026 budget deadline, suspending many non-essential federal operations
World
US government enters partial shutdown after 2026 budget deadline was missed

The US government entered a partial shutdown after Congress missed the 2026 budget deadline, suspending many non-essential federal operations. Lawmakers expect a short disruption as the House prepares to vote on a Senate-backed funding deal. The United States government entered a partial shutdown

Just now

India stands at a defining moment. Last year, while addressing COP30 delegates in Belém, Brazil, Union Environment Minister Bhupender Yadav committed the
Business
Green steel can shape India’s climate goals trajectory

India stands at a defining moment. Last year, while addressing COP30 delegates in Belém, Brazil, Union Environment Minister Bhupender Yadav committed the country to submit a revised, more ambitious Nationally Determined Contribution (NDC)

Just now

<strong>Redmi Note 15 Pro+ Vs Realme 16 Pro+ Price In India:</strong> Redmi focuses on eye comfort with 3,200 nits brightness
Latest News
Redmi Note 15 Pro+ vs Realme 16 Pro+

Redmi Note 15 Pro+ Vs Realme 16 Pro+ Price In India: Redmi focuses on eye comfort with 3,200 nits brightness, high-frequency PWM dimming, and TUV certifications, while Realme prioritises visual impact with a curved HyperGlow panel and an ultra-high 6,500 nits peak brightness in the price Rs 50

Just now


Sing Up