Why do I avoid trading commodities?

[LeoFx]

I got two of my trading balances crashed trading silver so it seems to be the worst pair to me. I avoid trading commodities since then. But Eurotrader offers comparatively narrow trading spread and high leverage that help me earn more on average.

 

[Imogen Beaumont]

To trade metals, you must have practiced a lot and worked with a demo account on a trial basis, otherwise it is the same and it may blow your account.

 

[Polakandil]

The metal commodity is highly volatile, rush in decision-making could be dragged in the big floating loss, trading on gold if using a tight stop loss will often hit due to high volatility and dynamic of the price movement, however trading in metal commodity is challenging, trading gold could be profitable but need higher balance.

 

[Latham]

You can adopt some tactics to higher your profit ratio. Except for so, there is nothing you can do for certain to reduce the loss ratio. You can trade any pair with FXOpulence broker because they charge narrow trading spread to traders.

 

[Fin_Trader]

In addition to the high volatility of such trading instruments, when you can either make good money or get a good loss, brokers have large spreads for such pairs. That's why I avoid this type of trading. I prefer to trade calmer major currency pairs, such as EURUSD, for which the spread at my broker fxopen is 0.00-0.03. At the same time, due to the low volatility, I am able to set small stop losses, which prevents losses from being critical in case of unsuccessful transactions.

 

[Lazarsblck]

If you can't handle high volatility then keep avoiding commodities. They're account blowers.

 

[Polakandil]

In fact, last week I tried trading Silver to give high profits because the cooling US inflation data had a tremendous impact on Silver price movements until it reached over $31 price level. But it is true that with high volatility the risk is also high, this has become a common thing in forex trading.

 

[Fin_Trader]

The advantage of Forex trading is the ability to choose a large number of instruments for trading. And those who want to earn a lot quickly and try to trade highly volatile pairs. But do not forget about risk control and the fact that large losses will be difficult to compensate for later.

 

[panchovilla84]

I got two of my trading balances crashed trading silver so it seems to be the worst pair to me. I avoid trading commodities since then. But Eurotrader offers comparatively narrow trading spread and high leverage that help me earn more on average.

Commodities are awesome especially as a hedge against higher inflation, but silver is very volatile and the options on it arent very liquid.

 

[Polakandil]

Commodities are awesome especially as a hedge against higher inflation, but silver is very volatile and the options on it arent very liquid.

Yes, it's true, Silver is very volatile, without risk control and discipline in trading strategies, it can cause high risks which can result in large losses, therefore discipline is an important thing that must be maintained.