Trading Self Check is impossible without complete understanding of the trading market and how it is operated.
In order to better understand the trading market and how it is operated, we now address the history. We go through the most critical stages of the market development and see which of the market happenings shaped the market and changed it to me as we now see it. You probably have read the Ultimate investment: currency vs. gold, Ultimate investment: immpbile property vs. forex, Ultimate investment: clothes or bank being a bit unhappy about the need to adopt to the new market realities. It will be useful to go through the years of the forex market development and see how it was operating in the best years and during the recession periods. Afterwards we observe some cases in order to make our material more practical.
800 AD: the Japanese rice traders design the graphic symbol now called the “Japanese candles” and used to denote raw materials markets trends. All the traders use charts in order to define the best levels to buy and to sell the tools.
1945 – 1947: the gold and the British pound starlings act as the major fixed currencies and exchange medium (Breton-Wood system). Once the 2nd World War was over, a new version of the system was introduced. One of its cornerstones was that the gold and the British pound were the major international exchange mediums and currencies.
1947: USD replaces the British pound and is fixed on the 33,00$/oz to the golden standard.
1960–ies: the Japanese Yen is fixed on the 360 = USD 1.00 level. In the next 20 years the USD becomes the major international currency and is fixed related to the gold on the level of 33$ per oz. This period in the history is known as the golden standard acceptance. The Japanese Yen is fixed as 360 to 1$.
August 1971: The US President Nicsson excludes the USD from the golden standard
December 1971: The Breton-Wood system reconsidered with the official gold cost rising to 38$/oz.
The world economy faces critical changes as the US President, Mr, Nicsson excludes the USD from the golden standard system. As many other economic instruments the USD since than became a currency experiencing changes depending on the economic changes. The official gold cost is 38$/oz.
