Yes, I hope others can learn from this mistake.
There are several very key points to make from this:
1.
Traders are usually most vulnerable after a winning streak. I have read this before in many trading books and experienced it firsthand. Overconfidence can lead to a trader dropping their guard. If you drop your guard the market has a way of finding you out.
2.
Keep your risk to a minimum and be consistent. The more you win, the easier you feel it is to make money. It is only rational to want to risk more the better you are doing. This is extremely dangerous. If you are on the wrong side of a move it can all be over very quickly.
3.
If you are wrong, get out. There is nothing wrong with a large stop if it is based on a sound technical reason. There is everything wrong with a large stop that is placed because you DON'T want to be stopped out. (we call it the "spanish stop round here
) If the market is trending or the moves are violent, the market can find your stop. No matter how far it has to go.
4.
The unexpected CAN and WILL happen from time to time. Don't count on something to happen.
5.
If you suffer a destabilising loss, stop trading immediately.