When I started writing this article, I had very limited knowledge of the foreign exchange market, as well as economics and currencies. My first step was to learn most of the terms commonly used in the foreign exchange market. Next, I needed to learn some of the techniques used to analyze market behavior. This article has given me a wealth of knowledge beyond that of the average economics student and given me a huge advantage in the most liquid market in the world, Forex. The economy began with trade. Trading one object for another has existed since the dawn of man. Instead of simply exchanging items, people began using shells or metals such as gold or silver to represent the value of an item. The current monetary system was started this way. A piece of paper or a metal coin came to replace these objects and represented the value of something. An item may be assigned a bill number to represent its value. The currency would be exchanged for an item, rather than exchanging the items themselves. Economic activity began with this process of buying and selling things that are given a currency value. As economic systems contained within countries spread across borders, it was necessary to determine how much a currency was worth relative to other currencies. This was the basis for the foreign exchange market. Economics is the study of the production, consumption, and circulation of goods and services. This can be measured by currency value and can compare Palmeri 2 with different countries. People who produce, consume or purchase goods and services determine economic activity. This movement of money around the world happens from the middle of the paper and investors will be very reluctant to do anything with that given market. Furthermore, if forecasts are too high and then the ratio is lower than expected, investors speculate about whether the economy is actually improving or whether the forecast values were simply wrong. Now I think I want to change my major to Economics, complete an MBA in International Business and pursue a career as a currency trader. I have achieved many of my goals. I actually immersed myself from a beginner in the foreign exchange market to knowing how it works, actions and terms. I started by learning the terms needed to understand Forex. I then used these terms to learn about fundamental analysis covering macroeconomic issues. I explained how technical analysis works and used technical indicators to help me learn how to trade.
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