Trading foreign currencies is the most effective way for one person to achieve financial independence starting with a small sum of money, and building it up to a large fortune in just a few years.
It’s available to everyone with a small starting stake to put into their trading account. It can be done from home, Starbucks or anyplace with a reliable Internet connection. Nobody cares how you’re dressed. You don’t answer to a boss. You don’t have to attend any meetings or make Powerpoint presentations. The interbank currency market runs twenty-four hours a day, five days a week. So you’re guaranteed two days off a week, but during the work week you can trade in the middle of the night if you wish. If it’s a nice day, you can take a walk in the park for an hour to enjoy the sunshine, then return to trading. You set your hours.
For thousands of years, people have traded with merchants from other political jurisdictions (they didn’t really have “countries,” just kings and emperors controlling different territories). Because gold and silver were relatively rare and beautiful, yet durable, they became generally accepted money. In most cases, merchants would accept gold coins in payment no matter whose head was imprinted on the coin. An eighth of an ounce of gold was an eighth of an ounce of gold whether the coin came from Rome or China. Sometimes rulers issued paper money, especially to finance wars. The American Revolution was financed by “continental” dollars and in the Civil War the Confederacy issued paper money. Tradedax.com Those currencies quickly became worthless. Nobody could accept Confederate money after the Confederacy ceased to exist. However, the United States was successful in breaking away from Great Britain, but its paper money became worthless anyway.
In 1876 the great world powers agreed to set up a gold standard. They would issue paper money, because that was much more convenient for people to carry around and buy things with, but it had to be fully backed up by gold in the country’s treasury. That system worked fairly well. However, in the United States it created a political movement for a bimetallism standard which would include silver. Also, when miners located large gold mines, such as Cripple Creek, Colorado in 1900, it created inflation. World War I broke out in 1914, and the major countries went off the gold standard to pay for it.
To show you how important money supply and currency exchange rates are, you need to understand they created the conditions leading to World War II. After Germany was defeated in World War I, they were forced to pay massive reparations to the Allied powers. This led to massive inflation in Germany in 1924. Employers had to pay workers several times a day so they could take the cash home to their wives to rush to the grocery store and buy dinner before the price went up. Eventually, Germans burned their money because it cost less than wood to heat their homes. The hardships of that period eventually led to the rise in power of Adolph Hitler and the Nazi Party.
After World War II, the major powers set the US dollar as the world standard. The United States has the largest economy, and their agricultural and manufacturing base had not been damaged in the war. This was known as the Bretton Woods agreement. From the end of the war to 1971, the world’s currencies traded at a fixed price in relation to the US dollar. And the US dollar was pegged to gold at the rate of $35 per ounce.