Many accounts must have been blown out with margin calls at the time of the flash crash (not using a proper stop loss)…Sure there where lucky guys that did well on this. But…you can’t rely on luck.
The problem with forex is that you dont know when the next BIG move against your trade will happen. It hasn’t got to be a flash crash, any major geopolitical event can result to a huge move against you.
I am posting an example of how i could have blown my account in a single USD/JPY trade…Just one trade!
If i kept adding to the losing long position with the mindset…"i am buying low-i am going to breakeven at least…"it would have been blown way before the flashcrash…
For me, when it comes to question if a trader is good or not, i am going to decide by studying how he is managing his losing trades not his winners. Once in a winner life is easy. But when in red…are you going to jump on the liferaft on time? or sink with the ship?