Commodity Market Risk

CME Gold futures and CME Silver futures had a most volatile move in recent time yesterday.  Precious metals were continued with their fall on monday morning  but staged a miraculous recovery leaving gold with its best gain since June 2012.
Gold which made a low of $1437 make a sharp pullback in evening session and pullback near $1400 odd levels.  CME silver Futures made a 12.5%, retested $ 23 after making a low of $19.7 move in single trading session with volume 82% higher than 100-day average.
So precious metals showing such wild moves,You can’t help but think about risk when you think about trading commodities. Any wrong trade without a strict Stop loss could have wiped you out of market.  I have seen many small traders with capital as low as 50K trade in commodity market and such wild moves wipe them out of market as they just trade on "LUCK", they have no trading system.

The aura of high risk in commodities ..

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