An essential part of being successful in the currency markets is understanding its history and it is evolution. The stock exchanges have got around 500 years to develop into what we have today and they continue to evolve as the years go by. The idea of the stock exchanges date all the way back to 14th century Renaissance bankers. During this age the Venetians created a system of sophisticated systems of securities exchange, allowing traders to buy and sell government and business debt obligations. This kind of idea was then picked up in 1531 by Belgium and that's as we saw the very first stock exchange open in Antwerp. In this particular exchange people were able to trade quite a few promissory notes, bonds etc... This was different as today where we trade stocks, these were actual solid monetary notes.

We all know about the Ventures of folks like Columbus and companies like the East Indian Trading Company. These Ventures were paid for by investors which was the beginning of actual trading of stock. Many investors did not want to simply invest in one venture as a result of quantity of risk involved. The same as today when we try to keep a diverse portfolio, investors of the day wanted to spread their investment across a number of different voyages allowing them a sure return on at least a number of them. That's where the perception of buying shares (aka Stocks) came into play, each investor could put up a portion of the cost so no one person would have to put up the entire cast enabling them to invest in multiple ventures. Now as opposed to buying one ship and hoping it made the voyage they can have a share in many ventures so even when one ship did not make it there other shares would make up for the loss.

Once this method caught on people that wanted to invest in multiple ventures needed a set place to invest in each venture they chose. It could be extremely impractical for them to go from one company to the next putting up money or even the voyage it might take too much time and energy. This is in the event the earliest exchanges started to open in England. Many of these transaction within the early days started to happen in coffee shops. The ever famous London Stock Exchange takes its origins from these early 17th century coffee houses.

Through the early years of the exchanges regulation was nearly zero the governments realized this was an issue after many companies wouldn't let share holder know of catastrophic losses they had incurred until it was too late. That might leave investors retaining shares of companies that were worthless when they could have had the option to bail should they had known these losses were piling up. Take for example South Sea Bubble of 1720 when investors suddenly saw the South Sea Company come crashing down after reaching amazing heights. This was the very last straw and cause government to really start setting some regulations on these exchanges.

The recognition of stock exchanges began to grow all throughout the world as the result of increases in wealth created by industrialization. This caused the establishment of the New York Stock Exchange which happens to be the biggest stock exchange worldwide and it has become the center of the world financial system. Then with the establishment of the web we have seen every day people able to trade within these exchanges. This caused a dramatic rise in the stock markets value in addition to increased liquidity. This has also led to us having multiple exchanges in the US, even OTC pink sheets which is privately owned has been created to allow us to trade in shares of stocks that do not meet the regulatory rules set through the government.

Now today we have the option of trading stocks on a Foreign Exchange as well as right here at home all while sitting at the computer. This has been a large step for the country and its people allowing smaller companies the ability to be publicly traded, giving them the capital they need to continue and hopefully grow their business. We can now trade anything from commodities for example corn to businesses that deal in cannabis. With just a little hard work you could own your own business and get it trading on the OTC. The OTC market is for smaller companies and businesses that can't match the regulations imposed through the government. These stocks may be just a little more risky than the stock on the NASDAQ, DOW, or S&P however they provide people the opportunity to invest in up and coming companies at surprisingly low prices. Say you only have a couple of thousand dollars to invest which leaves you only able to buy say 10 shares of a weed company (these details) like Apple but on the OTC you can end up with thousands of shares of and up and coming company that in a number of weeks enable you to make 50% gains rather than maybe a 10% increase from Apple in per year time. Sure Macintosh will probably be the safer bet in the long run but with just a few thousand dollars it's hardly worth the trouble to invest. Now if you were a millionaire who could invest hundreds of thousand Apple it might be a good choice for and an incredible way that you can keep your hard earned money safe while raking in great profits.

Within this day and age we even have companies which provide newsletters announcing what stocks are going to be performing well. These companies create programs that permit them to narrow down the sector of stocks and throughout the use of algorithms can figure out which stocks or almost certainly to head up the charts or crash. The usage of these algorithms have become extremely popular in recent days and have increased investors success unfortunately these methods or not absolutely accurate 100% of the time. These algorithms are put into use in everyday indicators such as the MACD which I am sure you've got heard of. Many of these algorithms are certainly easy and also you see them every day on sites such as Google finance or Yahoo finance. Yet some algorithms that you find on top end trading platform from companies like Etrade or the site mentioned above have are a compilation of several of these more basic algorithms which results in a program which will literally pick out which stock you should buy. The currency markets has evolved considerably throughout the years and right now there are actually an abundance of options for a trader that can provide them with outstanding possibilities to make profits. We have new tools and stricter regulations to keep companies from cheating; this is the era of the trader and if you should seriously think of investing now prior to the future doesn't look so bright.