Most people use stops
It would be a rare stop set at 15% below current level.
Most "long term traders" are going to have a bunch of stops about 8% down.
The Flash Crash in Gold wiped out those stops, as the record setting volume on all ETFs, futures, miners showed.
From BPT the chart below is a nice summary. This is a 1 week change
At the extremes, gold dropped from 1620 to 1320, 300/1620, 18% in less than a week.
Silver dropped from basically 30 to 22, 8/30 == 26%
Palladium 780 to 650 ====16%
Platinum 1600 to 1375 ==========14%
A huge transfer of wealth, that is what the game is for the powers that be that know too much about the market and control too much. True that even back in the day, huge swings would take place but not with the same level of knowledge as can be computed today.
The danger of "this time it's different",
The everyone is printing phenomenon has never before occurred in the world as an aggregate.
This has some obvious results, hard assets will require more paper dollars to buy them.
Perhaps we see deflation in the things that you don’t need or things that you can’t get away from (60” plasma and Harley Davidson, and your house for examples),
and inflation in everything else that we do need, food, energy, honest money, guns and ammo).
You saw the HUGE premiums on Junk silver? When I wrote that “how to buy” last year, premiums were .1 to .3 over melt value, now its $4 to $5 !!!! And you have to wait 2 to 3 weeks….that means they don’t have any.