Learn From This Video! How I Turned a $4k Loss into a $18K Loss

FX:CHFJPY   Swiss Franc/Japanese Yen
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Some people would be embarrassed to post a video showing a live account loss from a Mental Error.

I’m not. We’re all traders. We all make mistakes. To become a Great Trader we all have to learn from those mistakes. As time goes on after you’ve become a successful trader…it’s still easy to become LAZY From Time To Time. This Video Shows A REAL LIFE EXAMPLE...Of What Can Happen....

As The Video Shows…I have a Highly Profitable System I am Trading in one of my accounts. I was simply Busy when I was entering in Orders for the Day….And out of Pure Laziness I did not place my Stop.

Then…A Statistical Anomaly that as Traders we see maybe once every 5+ years happened the very next day.

This Video Shows The Result: Hope You Learn From It.....

After over 3,000 views the first two days of releasing the video above...and all of the great comments and PM's I received...After reviewing the situation I created a follow up video that covers many topics to take in consideration for todays             market uncertainties.

Great! This is what a respectable trader do. Share his mistakes so others can learn. Showing his winners can set people in a positive mindset to trade, but is not the best to learn.
+8 Reply
Sorry to hear that, it happens... even to the most senior of us. The most I learned from trading my P&L back from the gutter to unch. I now use a trading system that automatically puts in a stop at X% from my entry price and I can later adjust it. Good to post about the other side of trading stay strong and go get them!
+5 Reply
Chris, thank you for the openness. I also openly publicise my mistakes. It's also my opinion. We all make mistakes. We must learn from them. It is important to have profit finally, not necessairily from the single deal. My profit to loss ratio is 50:50 only. So for somebody I may look like a looser. But not this ratio and not the single deal is what counts.
And: I also lost on this pair in these days. Not as much, but this may depend on the amount involved. And I also made a mistake; not the same but a mistake as well: I didn't leave the deal closed after the stop was reached but entered the deal again. It's a typical mistake as well and usually I don't do this, but at this exceptional situation I thought that I can insist on my opinion. Sometimes it worked like recently with XAUUSD; this time it did not. And usually it does not.
So everybody should be warned.
+2 Reply
Thank you for sharing..
+2 Reply
Thank you for being so open and transparent and sharing this really bad experience. I hope all of your awesome scripts will help you get that amount of money back very soon.

Trading Bitcoin where exchanges get a DDoS attack every few days to manipulate the price and prices swinging like crazy every few days anyway, I made it a habit to always add a stop loss, even it is far away and would be very costly, it's still better than no stop at all.

Don't let it get you down. Shit happens!
+5 Reply
Bill Gates on mistakes:
+1 Reply
I've done this before. Placed an order, did not place stop, then my internet went down all day and the next thing I know I'm at a huge loss.
Thank you for sharing your experience. Your video is so clear even for me that I am not an English-speaker.
I am so sorry for what happened. A lot of people lost their money.
But I have a doubt. I am not sure, if the broker could execute your stop loss order in a case like that.
I hear that a lot of brokers, interrupted operations because of the high impact of the SNB news. What would you think?
+4 Reply
Nice of you to post that!! Great valuable advice..... I'm sorry you got caught up on that.
+1 Reply
Thanks a lot for your sharing.
+1 Reply - FXCM is in trouble
I don't understand how this loss resulted from being lazy. You could have had your stop their, and you probably wouldn't have had the trade closed out. There was no market at that time, no liquidity. Your broker would have closed your position at roughly the same price you did. Although you didn't place a stop, this loss came from an anomaly like you said in the video, not from being lazy.
+7 Reply
jangseohee vlad.adrian
putting a stop loss might not help if it gap up over the stop loss level, one of my friend here put in stop loss for USDCHF, the stop loss wasn't trigged!
+3 Reply
Great courage Chris, Not many people would share their pain as you have...We as traders make mistakes (being human) And there are many ways to make them. I had the worst day of trading once many many years ago trading the MEX PESO. I developed a good system which told me to place a Sell MOO order on the PESO. I left it with my broker and went to bed. For some reason I woke up in a cold sweat about 2 hours into my sleep. I said oh no what if it gaps down violently (as my system sometimes predicts) I could get a massive gap fill with a stop 1000ands away from my fill. I rushed to the screen and to my horror the PESO was massively down on a gap. I messaged my broker and he said don't worry I was too busy to place the order straight away but I have a few moments ago and your stop is in place. I looked in horror I said you have placed me into a massive waterfall and my fill was at the bottom of the fall. He said don't worry I have your stop on! I said my stop is 5000 dollars away from my fill and I was loosing thousands on a massive reversal. He didn't trade the MEX PESO and those decimal points didn't look too ominous. Hell they did to me....That by the way was only parts of that horrible night I was LONG the tanking S&P and Aust SPI. This lesson taught me the value of LIMIT ORDERS. If I placed a limit order I would have been safe..OK I missed the down move but that was better than what happened.
+2 Reply
I totally commend you, as moments like this make us humblet traders. However, I think there are lessons to be learned. I wrote a small article ( that kind of captures traders perception over the last six years. Complacency breeds indolence, and it doesn't take many of these slips to learn a stern lesson - the market is the greatest equIizer.
I respect your candid video and understand how youan be lulled into the not needing a stop loss (since your system had never hit the stop loss anyway).
Your money management is what I hope most people viewing will learn from.... greed is not good... Even Gordon Gecko says it's not about the money but the game :)
But on some currency pairs, there was a hit up to 400 pips... which is shocking but with good money management, it is more nuisance factor when the market swings against you 400 pips in a single day.
In your case, I think you took about an 11% hit on your account balance since you had grown it substantially since June. A set back, none the less but not the end of the world.
Those who are over leveraged will be wiped out in this environment or even when the market does it's whipsaws...
Like your system, stop losses should be put in place as a safety net for extreme events.... and normally we should close bad trades AS SOON AS A BAD TRADE IS IDENTIFIED and not wait or hope it will come good!!!!!
+3 Reply
Thanks for sharing that video!
As a few others said... there is no chance a stop order would be useful in this event. Liquidity was gone. This is case study for a risk management.
+3 Reply
Thanks you for honest although painful video. It is really an I opener. I am novice in stock trading and definitely would love to follow an experienced trader like you. Needless to say that sharing your mistake on public adds a lot to your credibility. You kept talking about the automated system that you use. If it is not secret can you elaborate on this system. After all 95% success rate is very impressive.

+3 Reply
I admire your sharing this. A long time ago, a friend of mine who worked in Japan, told me that one day a bank got out of money by not placing the stop. ONE BANK. You are lucky only 1 lot. Even bank can close their door for not placing stop.
+4 Reply
JayJay alex.a
Wow.. for real? .. banks don't place stops? ..
Thank you for sharing your experience.
Just a personal note:
In a "normal" trading environment, your point about stops would be VERY valid.
But this time, it was a communication failure from a central bank (SNB) that created a liquidity shock that no stops would have prevented, as people who had stops in place and ended with negative balance accounts demonstrated...
The only way to avoid this disaster would have been for all major central banks (FED-ECB-BOE-BOJ-BOC) to intervene together that day to mitigate the volatility / liquidity shock that happened from a very irresponsible decision in the era of HFT and over-leveraged bets.
This event is probably only a glimpse into the future.
The consequence of the totally irresponsible policies that central banks have embarked in, manipulating the markets discovery mechanism, faking wealth with non-repayable debt.
+4 Reply
Your stop wouldn't of helped. It would of executed at the open.
+1 Reply
Chris, I was also short on the CHF/JPY pair when this happened and I DID have a stop loss but it never triggered and I ended up with a 1200 pip loss. When it happened, my Trading Station froze and it didn't allow me to do anything. If it triggered, I would have loss only about 20 pips on this trade. I opened a case with FXCM to get a refund on the difference last THURS but they never got back to me.
Lanmar PRO JohnDdddd
And they won't. This type of risk is clearly stated in the contract; stop losses do not always get triggered.
no liquidity, stop loss wouldn't help... move on
Hey Guys...Thank so much for all of your comments. Instead of replying to everyone I created a second video covering my answers to the majority of the comments that were made....and I cover a few major points that I meant to make in the first video...but didn't.

Several topics that are relevant in todays market environment were also discussed.

Link to 2nd Video...
+4 Reply
elp ChrisMoody
TY for the first and second video! Being totally honest to yourself is a quality of a great trader!
Thanks for the post Chrissy..
JayJay JayJay
Would love to hear that silver futures story in more detail..
i was not trading the swiss pairs that time, but even if you placed a stop there, will it be triggered? It declined so much and so fast that i doubt that the stop will be triggered.
+2 Reply
I think Chris address this on his second video :-0
i alerted this situation where my friend encountered
Yep, thanks for sharing this :) I actually felt sorry, until i saw your balance.
I'm such a small fish compared to your balance ;)
Thanks for sharing. Yes, bad mistake. But no, you probably would have taken nearly the same loss in this case, stop or no stop. I highly doubt you would have been filled anywhere near the stop. Liquidity vanished, and we all know what happened. People need to be aware that a stop is just a market order that triggers at a set limit. It is not a guarantee of getting filled anywhere near the stop (unless you are trading with a broker who allows you to pay an extra fee to guarantee the stop). So, good lesson, but really in this case your goose was probably cooked stop or no stop. Maybe you would have saved 500 bucks. :)
ChrisMoody PRO SetagayaGirl
Your right...I recorded the first video immediately after exiting the position....In the second video I covered a few of the topics/statements from above...

However...As Stated in the second video...even though the stop wouldn't have prevented the loss...As Traders we can't control the market...But we can control our actions...and there could have been a hundred scenarios that could have hurt me that would have been prevented by having my Stop In Place...No excuse not to follow our Trading Plans...And my Trading Plan Says - Always have Emergency Stop Placed...
Thank you very much for your advice!
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