I want to refer back to the analogy I used in the previous video, because once again it makes an important point when running any business, but it is one few traders ever consider, and this is the somewhat mundane task of trying to measure success.

For a vanilla option, the contract specifies in very precise terms the amount of the underlying asset, the expiry date, the strike price and the type of delivery of the underlying asset.

The last of our four capital markets is the forex or currency market, which is unique for a number of reasons.

And if dealing with fear, loss, anxiety, and risk were not enough, there are plenty of other issues which can hijack our efforts, and once again these are all entirely understandable and all part of our psychological make up and evolutionary development.

It’s an economic fact that US economy consumer spending constitutes somewhere between 70% and 80% of GDP which, in simple terms means if and when the consumer stops spending, the US economy goes into reverse.

When considering the Eurozone, it is easy to forget there are currently 28 members in this trading block, and likely to be reduced to 27 once the UK has negotiated an exit.

Every decision taken by every investor, trader or speculator, in every financial market everywhere in the world is about money. Nothing else – just money.

Having considered oil producers and world oil reserves, we now need to consider the consumer end of the equation, and as you would expect, at the top of the list are the USA and China in that order.

Now let’s move on to the yen based pairs in the yen complex. And here the relationships are more straightforward with the yen as the counter currency for each pair.

Next in the list of chart patterns come, triple tops and triple bottoms. And the reason for including these two is that they are often the signal for a major turning point in a market or instrument.