The 1920s were called the roaring 20s because of the freer feelings many had, yet at the same time the world was reeling from WWI and the end of the decade would provide one of the worst times in history for financial stability. As you seek forex training learning about past events can help you understand why the market is established as a decentralised one with free floating currencies. Not all the events will have played a huge role in the formation of the current forex market; however, many of them certainly helped.
Forex Training on the first 6 Years
In the first six years of the 20s there was a Mexican Revolution that ended, Greece started up the monarchy again, Irish Free State was established and Northern Ireland was created. Adolf Hitler started making his move, which would eventually create the Second World War. Russia invaded Georgia but it was also the end of Russian Civil and Polish Soviet wars. Italy got Libya back, and then the union of Central America was dissolved. Egypt gained independence from the UK, but British forces retained control of the Suez Canal. Mussolini is brought to power, the Irish Civil War starts, and the Ottoman Empire comes to a close. All within three years this happened along with the formation of the USSR as the first Communist state. Other attacks continue for 1923 as some of those already mentioned end. Walt Disney founded his company too. For forex training you may be wondering how all this ties in.
First you have companies like Walt Disney who are major players in international investments, which has a direct effect on currency. You also have Hitler starting to rise to power which sparked WWII. The world was an unhappy place with all the wars and the USSR certainly made an impact for decades. Add in the FBI is established and Hirohito becoming leader of Japan and there is quite a bit to do with forex’s path. Forex training about these events is trying to show you how things eventually ended up into the Great Depression.
Forex Training for the Rest of the 20s
By 1927, the world population was at 2 billion. Penicillin was discovered. The International Red Cross and Red Crescent was established and Disney creates the most popular character in cartoons. With all the wars, the discord, and need for goods Wall Street crashed, ending the 20s on a very despairing note. For financial forex training it is the Great Depression of the 20s that matters the most to the forex market. The stock market crash showed the financial industry could be extremely vulnerable. Banks were certainly unstable and it led to one of the poorest times in the world’s modern history. Crops failed which meant money was not rolling in for some countries and more was rolling out to find imports to help the situation.
Currency exchanges happened between countries as a means of payment and it certainly showed that nothing was immune to trouble. If nothing else in your forex training you should understand how troubling events like war can bankrupt countries and damage currency values.