Traders are very hard to understand. They are making wonderful trades and they are also losing money. They are making a great comeback in Forex and they are also losing their account. If you look at this investment market, you will find that this is the only market where all types of traders’ trade. All these traders have one goal in common and that is to make money. If you can make money in Forex, you are successful and respected in the trader’s community. If you cannot make money in this industry, you have to stop trading and start looking for other markets.

Among all of these workings, trading and illusions, the weakest link in your career are never revealed to you. We are busy with the trading strategy and analysis that we have no time to care for ourselves. We do not know that the powerful thing that we are searching for our whole life in the universe lives within us and the weakest links we always try to find among others also have within us. If we can know our weakest links and try to perfect it, we can be the next professional traders in Forex.

Lack of knowledge
Knowledge is the key to success in the Forex market. Many retail traders don’t give enough importance to their trading knowledge thus lose a huge amount of money in the Forex industry. If you ever get any chance to meet with the professional traders at Saxo then ask them how they are making tons of money by trading. Every single one of them will answer that strict discipline and proper trading knowledge is the key to success. Being new to this market it will be really hard to understand all the trading parameters but if you work hard then it’s just a matter of time to master the art of trading.

Maintain a trading journal
Maintaining a trading journal is very crucial to your success. It’s very normal that you will make many mistakes even after spotting the perfect signal in your online trading platform. But the majority of the traders don’t learn anything from their mistakes. Unlike the new traders, the expert traders always maintain a trading journal so that they can easily learn from their mistakes.

Human ego is the weakest link in Forex career
You will find that all the traders in Forex have the ego. They have a high level of ego and they cannot think they have done this wrong. Egoism in Forex traders can be seen in Forex male traders. Male traders are very much hard working and they sometimes do not know if they are working for the right goals. If your goal is to run and you are working on building your body, this is useless.

If you know that you have mistaken in your strategy and do not perfect it, it is your ego that is stopping you from doing it. Many traders know they are doing it wrong but do not perfect it for their ego. Your ego cannot help you to win a war of guns with butter. Never mind the ego and do what you have to do. This correction of the weakest link in your nature will make you a great trader. Most people are searching for their strategy development and analysis help when they need help with their own. They do not believe it after it had been told to them. Their ego is the biggest enemy of their career. When you know your weakest link, you will know how many chances you are missing for this ego.

Patience is also the weakest link
Most traders are impatient in Forex. If you are not patient, you will lose many winning trades. You need to develop your patience in Forex. It is also your weak link that you need to perfect in your trading career.

You cannot become a pro trader just because you want to. You should have the skills to become a pro trader. If you consider the traders in the United Kingdom they have become pro traders not only because they but they worked hard to sharpen their skills in trading. As a naïve trader, you should dream about becoming a pro trader but you should not think that it is easy to achieve. You should work hard to become a pro trader. You should be honest if you feel like a certain strategy isn’t working you should try out some other strategies rather than faking as if it’s working. You should have the complete knowledge on the basics of the market if not it will be very hard for you to become successful in the long-run. You should try out the effective strategies to trade the market successfully. It is true that maintain a journal and following a trading plan must be quite boring but if you want to become a successful trader at the end of the road you should make sure to do those. Each and every pro trader would have maintained the trading journal and the plan so you should also do it. Let us read the article.

Do you follow a trading plan
Don’t you think that following a trading plan is a skill? Of course, it is a skill because no matter how successfully you make a plan if you don’t follow it. You should have the strength and the discipline to follow the plan. When you have a trading plan you will not become emotional over unexpected losses. The pro traders have the skill of maintaining the trading plan so they were able to control the emotions in trading. If you are organized about the trading approach and strategies you will be able to trade better. Most of the naïve traders do not even think about creating a plan they think that the trading is just a tool but it is an essential step if you want to succeed in the market. Most of the traders fail due to not having a proper trading plan. You should spare the time to create a good plan as it will guide you to trade many profitable trades. If you have a trading plan it shows that you are a disciplined trader which is a must to become successful.

Have you demo traded
The next skill is trading the demo trading account. Actually, most of the naïve traders assume that step of demo trading can be avoided well, it is totally wrong. If you inquire the professional traders they would gladly accept that they have demo traded and corrected most of their trading mistakes. Even to trade the demo account you should have the skill because it is mostly about your practice in trading.

Do you have a trading journal
Why do you think that it is important to have a trading journal? If you have a trading journal you can easily identify whether you have progressed or not. You will be able to control yourself from over-trading and moreover, it will help you to understand whether you are traveling on the right path or not. You can even develop good trading habits by maintaining a trading journal.

Making money is very hard on Forex but losing it is just a matter of time. According to statistics, only 5% of the retail traders are successful in this industry. These are the smartest investors in the online trading industry. So if you want to live your life based on currency trading then you need to gain extensive knowledge in this industry. You need to think trading as your business and proceed with a strategic plan. Start slowly but learn precisely so that you can learn useful information of this industry.

Before we go into the intricate details on the idea of exotic options, we first need to gain a first-hand understanding of what it really is all about. To offer a simplistic definition, ‘exotic option’ is something that is fundamentally different in terms of structure from the usual European (or American) currency pair options. It can also be defined as a calculation; regarding how or when the investor would be able to get a particular payoff. Exotic options are usually of greater complexity in comparison to the “plain vanilla” options, which make them quite interesting. 

Since exotic options are complex, they engage in OTC (over-the-counter) trade. There are various types of exotic options that can be found. One of those is popularly known as the ‘chooser option’. By using this instrument, an investor gets the privilege of choosing whether the options amount to a ‘put’ or a ‘call’ at a particular point, during the time for which the option is truly valid. Since this kind of option can be altered during the holding period, it is not found on most of the exchanges such as NYSE or NASDAQ. This is precisely the reason for its demarcation as an ‘exotic’ option. Different kinds of exotic options include Asian, Chooser, Compound and Digital, among others.

Below is outlined a description of Chooser, Compound and Digital options. Read on: (Information collected from www.cornertrader.ch )

Compound options: These give the owner the right (but don’t saddle them with the obligation) to purchase another option at a particular price on or within a specific date. Therefore, the underlying asset of an option is an equity security. Therefore, in a compound option, the underlying asset always acts as a fallback scheme. Compound options are generally of four types: call on put, put on put, call on call and put on call. These options are very frequently used in fixed income markets.

Barrier options: These are similar to plain vanilla call and put options. But unlike the former, these only become active or get extinguished when the underlying asset has touched on a particular price level. When seen from this angle, it can be noted that the value of barrier options increases or grows in leaps, instead of taking small steps. These options are usually traded in the foreign exchange and equity markets. These exotic options are of four types: down-and-out, up-and-out, down-and-in, and up-and-in. For example, a barrier option with a knock-out price of $100 may be written on a stock that is currently trading at $80. The option will behave like normal prices ranging from $80 to $99.99, but once the underlying stock's price hits $100, the option gets knocked-out and becomes worthless.

Chooser options: These provide the owner with a particular period of time, in order to decide whether the option owned will become a European call option or a European put option. These types of options are generally used in the equity market, especially where indices are concerned. Chooser options are a great choice when speculations predict big price fluctuations in the near future, and can usually be bought for a lower cost than a call and put option straddle.

These, in short, are the various kinds of exotic options.