How I Lost 80 Thousand Within a Minute

How I lost 80 thousand within a minute? 

Importance of StopLoss

Why I didn’t place a Stop-Loss in my trade?

A big mistake which I did in my trade.

Guys! Today in this Blog I am going to explain a big mistake which I did last week on Friday on the Union Budget day of 5th July 2019.



I am a regular trader in the Indian Commodity Market (MCX). On the 5th of July i.e. on the Union Budget day, I made a short-sell position in Gold at the rate of 34,299. The gold price was hovering from the past 2 hours near my sell price and I was sure that it will come down as per my technical analysis. Many times my position came in profit from 50-80 points, but I didn’t book my profit and kept holding for a big profit. Meanwhile, I went off-screen for approx one hour and when I came to my trading terminal and saw the screen, I was so shocked. My short-sell position in MCX Gold was giving me approx 80 thousand loss, means it had surged approx 800+ points from my sell-price. I went on investing.com website to see the international price of Gold. On COMEX Gold was trading negative and it was hovering near the same level where I have seen before leaving my trading terminal a few hours back. I was trying to understand why this big difference in gold price on MCX and on COMEX. I was totally shocked and unable to understand what to do, I was not willing to book that much loss.

MCX Gold chart was showing a sharp spike in price within a few seconds. I had not placed a stop-loss in the system and that was my biggest mistake. This happened due to my overconfidence in my trade. Although I was correct in my analysis and gold price was trading negative in the international market. I searched Google for news and then I found that in Budget, Gold import duty tax has been increased from 10% to 12.5% and so in India Gold priced surged up by almost 2.5%.

Instead of cutting my position in loss I decided to wait and watch. I was nervous in those 20-30 minutes and kept closely watching the price moves of MCX Gold and International Gold. My goodness was that I had also a buy-position in Natural Gas. I kept holding both trade-positions, where MCX gold was giving me huge loss there Natural Gas was giving some relief. Later in the evening when USA payroll data came, Gold started falling down on COMEX and that was also followed by MCX Gold and then I managed to exit my short-sell position with minimal loss.

The loss in Gold had been fully recovered by Natural Gas. Ultimately I had come in some profit from huge loss. I regretted too much that why I didn’t place a StopLoss order in my trade. If I had placed a Stop-Loss order for my Gold sell-position then I could re-sell it on a higher level near 34900-35000 and I could generate handsome profit both in Gold and Natural Gas. As you know Natural Gas price surged more than 5% in the evening session while Gold fell down.




This was the biggest lesson for me that, we should always place a StopLoss in the system, not in mind and never be over-confident in any trade, there is no guarantee, anything can happen.