Forex Bible

By MENTES LIBRES

FOREX BIBLE
SUPER POWERFUL GUIDE to becoming a FOREX expert!

 

THE HISTORY OF FOREX

 

When foreign trade began, it was not an international trade market. This follows from the Bretton Woods agreement of 1944, which stated that foreign currencies would be fixed against the dollar, which was valued at $35 per ounce of gold. This precedent was first put into practice in 1967, when a Chicago bank refused to finance a loan to a professor in pounds sterling. Of course, their intention was to sell the currency, which they felt was too high against the dollar, and then buy it back when the value had dropped, making a quick profit.
After 1971, when the dollar was no longer convertible into gold and the domestic market was stronger, the Bretton Woods agreement was abandoned, and the currency conversion process became more variable. This allowed for greater support in foreign markets, and the United States and Europe began a strong trading relationship. In the 1980s, market timing and usage was expanded through the use of computers and technology to include Asian time zones as well. At that time, foreign exchange amounted to about $70 billion a day. Today, some twenty years later, the level of trading has skyrocketed, with the equivalent of about $1.5 trillion a day.
Originally, trading across international lines was more difficult, with several different currencies involved across Europe. Although the major players in the European market were deeply involved and were veterans of international trade by the time other markets joined in, there were more currencies to track - the franc, the pound, the lira and many more - than was reasonable. With the birth of the European Union in 1992, the foundations were laid for a single currency that would be used in most of Europe, and the euro was finally established and put into circulation in 1999.

 

LEARN FOREX TODAY AND CHANGE YOUR LIFE!

• Language: English
• Publisher: MENTES LIBRES
• Release date: Feb 11, 2021
• ISBN: 9781393760986

MENTES LIBRES

MENTES LIBRES is a space created in 2019 to promote financial education, motivation and personal development of its readers. We want our public to be educated and acquire the necessary tools to strengthen their minds and their entrepreneurial spirit, along with the ability to give them the necessary confidence so that they can achieve everything they set out to do. For this purpose, MENTES LIBRES created dozens of books that have a warmth in their readings, with the aim of nourishing their intellect and making them feel accompanied in the process towards a life of abundance.

Book preview

FOREX

BIBLE

INDEX

Chapter 1: What the stock market is all about

Chapter 2: Stock Market Trends

Chapter 3: An Introduction to Forex

Chapter 4: Understanding Currency Conversion

Chapter 5: Understanding Statistics

Chapter 6: Currency volatility and market expectations

Devaluation and revaluation

Chapter 7: Aspects of Trade

The market makers and the sale of short circuits

Chapter 8: Risk Management

Chapter 9: Fashion words

Chapter 10: Negotiation Options for Experts

Chapter 11: Other Trading Options

Chapter 12: In Review

Chapter 13: A Final Choice

Chapter 1: What the stock market is all about

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In any lucrative business or enterprise, preparation and prior knowledge are the keys to success.  Without this kind of knowledge, the attempt to make a profitable financial decision can only end in disaster and failure, regardless of your level of motivation and determination or the amount of money you plan to invest. 

In the stock market, this rule applies to the umpteenth degree, since you are investing your own money in what could be considered a high risk bet, and you are playing with fire if you do not have at least a general knowledge of how it works.  Since having experience in any area is useful in guiding you through a path in that particular region, the more solid your investment knowledge base, the more likely you will benefit from any attempt to trade in the open market.

In many ways, trading on the stock exchange can be compared to driving - you don't need to be an expert to drive a car, although you are expected to have some prior knowledge of basic traffic laws, including traffic violations, safety regulations and other legal vehicle violations, which are learned either through specific studies and courses or even through some form of simple exposure (such as the years you've spent riding with your parents and others you've driven for years).  You should be able to understand the basic tools used to navigate a car (where the brake pedal is in front of the accelerator, and how to use the rearview mirror, for example), even if you have never touched a steering wheel.

The same thing happens when you enter the world of the stock market.  Although you don't need to know all the terminology (at first you won't be selling short or determining your own long and short positions, so you don't have to fully understand these references, although you should be aware of them), you certainly must be versed in the basic functionality of trading stocks, bonds, stocks and other commodities.  And just like someone who is behind the wheel of a car and getting ready to touch the accelerator pedal for the first time, you should start cautiously and work slowly.  A first-time driver will set the mirrors to his liking, then start the car, look for interfering traffic and release the accelerator pedal, never step on it, and test the engine as you walk out the door on the first attempt.  Similarly, when you select your first investment, you should choose something stable with few fluctuations and not invest a large sum of money in this first venture.

When a person is learning to drive, they will be accompanied by a more experienced person who will help them make better driving decisions and offer corrections that will help them learn to drive the car more efficiently.  In the stock market, there are stockbrokers and other experts who can provide you with information and advice to help you develop your knowledge of the raw materials you are interested in, essentially guiding you to better buying and selling decisions in the stock market.

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