Thread: Has the latest event with CHF affected your outlook on forex?

My account got wiped out by the smart move of swiss. It was a small account where I was testing egies that are live. I can consider myself lucky. I am not giving up forex since I invested too much money and time.

Moves in this way affirm my view that Forex the FX market is the ideal way to protect yourself from the systemic risks of retail forex. Like many of us , I've traded all various time frames, but the longer you have your money at the market that the bigger the chance is for an major event to destroy your account.

These infrequent events occur all the time, and no one can predict or discontinue them. I attempt to keep the money in my brokerage accounts comparatively small, utilize leverage, and get in and out as quick as I can. It's much more labor intensive than trading term, and it's difficult, but I would have to be unfortunate to have my account wiped out.

Originally Posted by ;

Moves like this affirm my view that Forex the FX market is the best way to protect yourself from the systemic risks of trading retail forex. Like most people here, I've traded all time frames, however the longer you have your cash in the market that the larger the chance is for an unpredicted major occasion to destroy your account. These rare events happen all the time, and nobody can predict or discontinue them. I attempt to keep the money in my brokerage accounts relatively small, use leverage, and get in and out. It's much more...

I'm mostly with you. But THIS one was extreme. Long term or scalping didn't matter here, your SL was ignored as there was no price which came close. The liquidity dried up. To be fair: I wouldn't have anticipated such a behaviour starting a bloody war. Fortunately I'm scalping/short term trading the markets from 5 to ~9 (GMT), therefore I didn't had any trades open when the mayhem started. I'm trading that early since I really don't like news events.

I can't see how anything could change. Forex is risky period. You want to play you go to pay. :--RRB-.

Originally Posted by ;

Moves like this affirm my view that Forex the FX market is the best way to protect yourself in the systemic risks of trading retail forex. Like most of us here, I've traded all different time frames, however the longer you've got your money at the market the bigger the chance is to get an major event to destroy your account. These events occur all of the time, and nobody can predict or discontinue them. I try and keep the money in my brokerage accounts relatively small, use high leverage, and get in and out. It's much more...

I am not so sure. Scalping on the wrong side of the CHF pairs prior to the SNB announcement could have cleaned a trader out, particularly due to the enhanced position sizes that scalpers use for the moves. A long-term trend trader investing in a bundle of instruments with a risk per trade would have been hit but not to the exact same extent. By way of example, I took an extraordinary hit (despite using a stop at 1R) on USDCHF however with 0.5% commerce risk, the blowout was just a 1% drawdown but I was in great profit at that point. Worst case scenario for me would've been state a blowout that was 2%. That says a lot about how standing sizing acts as a highly effective risk management device irrespective of whether stops functioning or not.

For scalpers prior to a statement if they're holding a trade, I would suggest a hedge immediately prior to the announcement and then wait for the dust to settle before giving a limb of the Dollar. Stops aren't necessarily your friend in these black swan events but at least you have a level of legal recourse as opposed. Guaranteed stops are better although costly but are available through a few MM brokers.

This of course assumes your broker stays in business following the event which renders all strategies mute dependent on how everything plays out.

All you people saying that this is anything but a serious major event have not been investing or you don't know your ass from a hole in the floor. This is a major occasion not just some normal event. Money could be lost in an event like this and was lost here. Get your head out of your ass and understand what's happened here.

JensG, I called this occasion a financial act of war on another forum but some said that announcement was on the top. I agree with you, this was a war like move on the part of the supposed neutral nation. That wasn't neutral, that has been competitive as hell.

You're right, if I had been unlucky to be on the wrong side of the occasion then yes, then it wouldn't have been pretty.

But as I am spending less time in the market I believe there is less chance of being subjected to such things, especially while I am not at the computer or I am asleep. It lets me sleep easier at night because I have shifted egies.

Originally Posted by ;

You are right, if I was unlucky to be on the wrong side of this event then yes, then it wouldn't have been pretty. Because I am spending less time in the market I think there is less prospect of being subjected to such things while I am not at the computer or I am asleep. It lets me sleep easier at night because egies've shifted.

Good to hear scottik. There have been a load of victims a week needing a hug that is good. This friggin. . bank!!!!!!

Originally Posted by ;

All you people saying that this was anything but a severe major event have not been trading too long or you don't know your ass from a hole in the floor. This was a major event not just some arbitrary event that is normal. Serous cash was lost here and could be lost in an event like this. Get your head out of your ass and know what has happened here. JensG, I called this event a financial act of war on a different forum but some said that statement was on the top. I concur with you, this was a war like move on the part of the Swiss the supposed neutral country....

No doubt it was severe, it was gigantic, it was egotistical, and it was brutal.

But large market moving/game altering events appear to occur with regularity, and will continue to do so since the world realises that the entire game is leveraged to the hilt and a crash is coming.

The announcement last year of Western QE was another illustration of a central bank coming out of the blue and altering the game.

In the words of MacGruber - The sport is changing, but the players will be the same.

Market has always been barbarous and the market is right. That fact didn't alter. The real impact it had on me is that the impression I have using brokers. Some seem to be much better than others.