Courses Infomation

The Crash of 1997 (Article) by Hans Hannula

Forex Trading – Foreign Exchange Course

You want to learn about Forex?

Foreign exchange, or forex, is the conversion of one country’s currency into another.
In a free economy, a country’s currency is valued according to the laws of supply and demand.
In other words, a currency’s value can be pegged to another country’s currency, such as the U.S. dollar, or even to a basket of currencies.
A country’s currency value may also be set by the country’s government.
However, most countries float their currencies freely against those of other countries, which keeps them in constant fluctuation.

Volume: 434 KB

This information was taken from the August 1997 Cash In On Chaos Newsletter, which was written by Dr. Hans Hannula and released on August 25, 1997 (303 452 5566; fax: 303 457 9871).

To offer you a special report, I’ve changed the Cash In On Chaos Newsletter’s regular structure. I have a unique message for you. The risk of a stock market meltdown is quite high.

The first graph demonstrates why I believe this. The 1987 market and the 1997 market are overlaid in this graph. A copy of a chart with this overlay was sent to me for the first time a few weeks ago. Larry Pesavento of Tucson, Arizona, submitted it. I greatly appreciate Larry’s perspective because he is a very seasoned trader and market expert.

What is forex?

Quite simply, it’s the global market that allows one to trade two currencies against each other.

If you think one currency will be stronger versus the other, and you end up correct, then you can make a profit.

If you’ve ever traveled to another country, you usually had to find a currency exchange booth at the airport, and then exchange the money you have in your wallet into the currency of the country you are visiting.

Foreign Exchange
You go up to the counter and notice a screen displaying different exchange rates for different currencies.

An exchange rate is the relative price of two currencies from two different countries.

You find “Japanese yen” and think to yourself, “WOW! My one dollar is worth 100 yen?! And I have ten dollars! I’m going to be rich!!!”
When you do this, you’ve essentially participated in the forex market!

You’ve exchanged one currency for another.

Or in forex trading terms, assuming you’re an American visiting Japan, you’ve sold dollars and bought yen.

Currency Exchange

Before you fly back home, you stop by the currency exchange booth to exchange the yen that you miraculously have left over (Tokyo is expensive!) and notice the exchange rates have changed.

It’s these changes in the exchange rates that allow you to make money in the foreign exchange market.

Salepage : The Crash of 1997 (Article) by Hans Hannula