"Humans have a great awareness of risk through survival instincts, but this does not seem to translate into the markets!"
I certainly didn't predict the move the SNB made to unpeg, but the observations seem to be borne true, especially when you consider that FXCM users owe FXCM over $300 Million, forcing FXCM itself to seek a bailout to satisfy their fiduciary obligations.
FXCM had even been one of the champions of allowing greater leverage use by traders to the US Commodity Futures Trading Commission review.
I had a bit of a loss on the USDCHF move, saved largely by stoplosses limiting my risk, but I also learnt a couple of lessons as a result of the "close-call."
1. I will from now on keep my option and any spot positions separate in another account. Whilst I didn't suffer any option liquidations, I would have been VERY annoyed if those long term options had been closed on me.
2. EVERY Spot position needs a solid stop loss. Fortunately I had that. The danger with Risk, is that is is unknowable until you suffer its effects.
3. Forex options are a better alternative to Spot. These are still alive at least, and not subject to leveraged margin calls.
4. Leverage must be watched like a Hawk, and controlled to levels that allow survival in surprise events, as proven in the chart of trading success and leverage above.
5. VOLATILITY + LEVERAGE = DYNAMITE