Salesmanship / Personal Selling

According to Robert A. Isaac, personal selling is the presentation of a promotional message through direct personal contact. It is a method of offering goods and services to the prospective customers by the person known as salesman. It facilitates face to face contact between the buyer and the seller and any inquiry about the product can be immediately answered. In fact, selling the product is making the goods and services acceptable to the customer and this effort is well made by the salesman. A salesman to be successful must  be well spoken and well dressed and have complete knowledge of his product and the company.

Product selling with reference to salesmanship requires the following steps:

• Sell the Company: Make the firm acceptable to the consumer.
• Sell the Personality: The salesman must convince the consumer that he is reliable, true, honest and competent.
• Sell the product: One above two steps are successfully accomplished getting the product acceptable to the customer is not difficult.

Disadvantages of Export

Export are heavily on the upside in mostly all respects and in societies. Its downside is very little and limited to only undeveloped countries. The main problem that arises out of exports is the scarcity of locally available essential goods. Undeveloped countries, in the rat race to earn foreign exchange at any cost, are bent upon exporting even essential goods like fruits, vegetables, meats, eggs, and other poultry and dairy goods which fall short for local consumption. The result on one hand a common man is deprived of these essential items adversely affecting his health, and on the other, these governments only earn a little fraction of foreign exchange forming a very little percentage of overall foreign exchange earnings. In Pakistan, eating fruit is luxury for a common man. Although it is an agricultural country it is unable to produce fruits, vegetables, and other products in such quantities, as not only to cater to its peoples needs but also export in maximum amount.s

Advantages of Export

Export is the other part of foreign trade by which goods and services are sold abroad. It has the following advantages:

1. Foreign Exchange Earnings: For a country foreign exchange is extremely important element in its economic system. To maximize its earnings of foreign exchange the country formulates effective foreign policies, establishes good relations with bordering and other countries, enters economic blocs. Export is one of the most important sources of foreign exchange earnings. If a country falls short of it, it seeks help from IMF (International Monetary Fund).
2. Economic Development: Export business brings economic development. Increase in export takes production to a high levels which in turn creates employment which is a significant indicator of good economic growth and development.
3. Identity of the Country: If a country produces high quality products at reasonable prices it makes a prominent place in foreign importing countries. People buy the goods by the name of that country with great confidence . Japan , Germany, U.K, France, U.S.A, and many other developed European countries have attained this respectable status. Customers across the world and readily buy products made in Japan, U.S.A , U.K., because these countries have gained customers confidence by providing quality products.

Steps In the Formation of a Company

Incorporation of a company undergoes a complicated procedure which is also time-consuming. It may take as long as one year's period. The formation requires many step to follow:

1. Getting Promoters Together: Those who form the company are known as promoters who must get together to work out the skeleton of the company. They must be at least seven for public company and two for private company. They are original shareholders and form the first board of directors.
2. Appointment of Advisors: Promoters appoint legal advisers who are expert in legal matters. They, under the guidance and instruction of promoters, prepare memorandum and articles of association, prospectus, and deal with the office of registrar of the company.
3. Preparation of Company Documents: The company law requires the preparation of certain documents in accordance with its provision before the company applies for registration.
4. Submitting Application with the Registrar: When spadework is complete an application for registration is submitted with the registrar of the company who is a competent government authority to grant registration.
5. Payment of Registration Fees: Along with the application registration fee is paid. The fee depends on the amount of registered capital.
6. Printing Share Certificates: After making an application with the registrar the promoter go to the press for getting share certificate printed. These certificates are issued to the shareholders as a token of their ownership in the company.
7. Issuance of Registration Certificate: Once the registrar is satisfied with all legal procedures, formalities, and documents, he issue registration certificate. On its issuance the company legally comes into existence. Private Company can start its business immediately after the receipt of the registration certificates. However, the public company cannot commence its business at this stage unless it gets another certificate known as commencement certificate.
8. Commencement Certificate: Even after obtaining registration certificate the public company cannot stat business unless it receives commencement certificate.
9. Publication Prospectus: On the receipt of the registration certificate the company issues prospectus to the public through advertisements. Prospectus is an invitation to the public to buy the shares of the company. Once the company raises capital through it the actual business starts. 

Correction of Invoice

Invoices occasionally may contain errors that include over-invoicing or under-invoicing. In case of such errors that following types of invoices are issued:

1. Debit Invoice : The debit invoice is issued under any of the following conditions:

• When a transaction has been omitted.
• The amount on the invoice is understand.
• If the packing materials including containers, canisters, or the like , the cost of which has not been paid, have not been returned. In this case the debit invoice is issued to demand of the buyer to pay extra charges for packing materials. The seller is bound to pay such a cost.

2. Credit Invoice: When a buyer has been over-charged or if some goods are found damaged the credit invoice is issued. In addition, if the containers, canisters or some other packing materials the cost of which had already been charged, have been returned, this invoice will be issued. Its objective is to make corrections and adjust the amount for refund. 

Objective of Proforma Invoice

Proforma Invoice is used under the following situations :

1. The amount mentioned in the invoices is the one which the buyer has to pay in advance of the delivery. Or the invoice may be sent along with the shipment. In this case the invoice amount is to be paid at the time of delivery.
2. When the seller decides that he must get the payment in advance he uses it. In the case of export the proforma invoice is presented to the custom authorities to enable them to assess the value of goods. On the ground of it import or export duty is imposed.
3. When the seller hands over the goods to his agent, the agent doesn't pay until the goods are sold. In this case the seller issues proforma invoices to the agent.
4. The seller may use it as a quotation form.
5. The proforma invoice may be issued along with the goods sent on approval. If they are accepted, the buyer will have to make payment in accordance with the proforma invoice. 

Proforma Invoice

The word proforma refer to "for form's sake". This type of invoice is issued to the buyer before the delivery is made to him. It contains such information as price, amount, packing, mail expenses, and discount.

If the amount of the order is less than the standard order of the company, additional surcharge is added and separately shown on the invoices

Invoice

It is the document issued by the seller to the buyer stating goods or services, quantity, rate, terms of sale, any taxation if any, etc. Term of sale included trade, cash and quantity discounts offered to the buyer.

What an Invoices is :

Invoices is a document used in business transactions. It is issued from the seller to the buyer. The following are the content of the invoices.

1. Seller's company name and address.
2. Date of the dispatch/shipment of the goods.
3. Receiver's (buyer's) company name and address.
4. Details of goods as brands, quality, quantity, or units, size, packing.
5. Price, rate, total amount.
6. Type of rate, F.O.B or C.I.F.
7. Commission or discount and its type, e.g trade discount, cash discount, or quantity discount. All types of discounts are deducted from the gross amount of the invoice.
8. Amount of insurance in the C.I.F.
9. In the case of foreign trade, the name of the bank through which the payment is to be made.
10. Mode of payment.
11. Term of sales.
12. Mode of delivery (railway, air, road)
13. Port of receipt.

Forex Trading 7 Tips to Succeed

There is more than one way to make money on Forex trading, more than 1 strategy, more than 1 tool you can use. However, there are some basic tips which can help you enhance your currency trading profits.
7 Tips To Make More Money On Forex Trading

1. Be disciplined - You have to think of this as a business and have discipline.Find one trading system which works for you and be consistent. Don't switch strategies every other day.

2. Accept the risks involved - Forex trading is a risky business. If you can't handle the risk (and losing once in a while, especially in the beginning) then trading isn't for you. Stick to your day job.

3. Embrace your failures and learn from them - Every trader loses money, even the Gurus, and don't believe otherwise. You will also lose some money along the way. Don't dwell on your failures. Embrace them and learn from them to the future.

4. Be sure of yourself - If you want to make money with Forex trading, you have to be sure of yourself. Lack of confidence leads to instinctive decisions which have little chance of succeeding. Bad traders lack confidence. Don't be one of them.

5. Learn to cut your losses short - Some traders fall in love with their trades.They hang on to them even when they go sour.Learn to accept the fact that you can make a mistake and cut your losses short.

6. Don't get greedy - You need to avoid falling in love with your mistakes as well as your successes. Some traders hang on to their successful trades for so long that they fail to get out of the market at the right time, and watch their potential profits dwindle to nothing.

7. Don't trade money that you don't have or can't afford to do without, One of the worst mistakes you can make is to trade money you don't have or can't afford to lose. Using money which you can't afford to do without for a time will lead to bad decision making. Only trade with what you got.

3 Trendlines Tools of Forex Trading

Newcomers to trading the foreign exchange currency markets do well to accept the observation of experienced seasoned traders that the idea of a perfect Forex trading tool is an illusion.

While no perfect Forex trading tool exists, using a combination of tools to identify a converging of favorable market factors can yield a majority of high probability trades over a period of time.

Trendlines certainly deserve close consideration and many successful traders add them to their collection of Forex trading tools.

It should be stated at the outset that trendlines by themselves do not provide a strong enough signal to warrant making a trade. They are a useful addition and provide confirmation of signals from other tools. (See resource box for a visual example of using a trendline as a trade entry point)

The Three Trendline Strategy

Consider these three main types of trendlines you need to know and use if you are going to make any sense of trendlines.

Trendlines are lines drawn across significant lows in an uptrend, and significant highs in a downtrend. The more candles to the left and right of the lowest candle in an uptrend or the highest candle in a downtrend make the low or high point more significant.

1. Short Term Trendlines

Draw these lines across the most recent two lows (for an uptrend) or highs (for a downtrend). These are best observed on a smaller time frame such as a 15 minute or 30 minute chart.

2. Medium Term Trendlines

These are best observed on a higher time frame such as a 60 minute chart. Again connect the nearest significant low to current price action to the previous significant low in an uptrend or the nearest significant high to current price action to the previous significant high in a downtrend.

3.Long Term Trendlines

Use higher time frames such as the 4 hour chart or the daily chart to draw long term trendlines using the same method described for Medium Term Trendlines.

The long term trendline can be a powerful Forex trading tool. Keep in mind that the daily chart is used prominently by traders of big institutions. Such traders probably do not engage in small moves on an intra day level. They are more concerned about taking a position on a currency pair.

The daily chart is consulted by them when making decisions. So by drawing a trendline on a daily chart you can present to yourself graphically just where price is and where it is likely to either possibly bounce and retrace or continue with the current momentum.

Using Trendlines As An Effective Forex Trading Tool

Trendlines on the short time frame merely give you a defined picture of current price action. These trendlines are broken often during the course of a day. It is probably not a good idea to enter trades based on trendline breaks from a small time frame chart. Their main use is to give you a clear, instantly recognizable graphical representation of current price behavior.

Forex Trading Counter Trend Trading

Statistics like "the market only trends 30% to 33% of the time" are thrown around. Whether that's true or not, I don't know. But suppose that the markets trended half of the time. That would still mean the 50% of the time the markets were range-bound.

I further suspect that the numbers above are correct because of the number of small
traders in the forex market. Small traders have a way of disrupting trends.(That's why the large institutional traders don't like them!).

One way or another, however, we know that the market is trendless a significant amount of time. If you continue to try to trade a trend system during these times, you'll either get no trades (if you're lucky),or you'll get a lot of choppy losing trades.

A better way to go about this is to use a counter-trend trading system. A counter-trend system looks to do the "impossible".It looks for the high and low in a market. It figures that if it finds a high or low, the market will reverse from there (because it's trendless) and you'll have a good trade.

So what is a good counter trend trading system? I'd recommend starting with Bollinger bands. The basic principle is to trade tags off of the upper and lower bands.

However,if the market is in a trend, you'll get eaten alive.So it's necessary that the bands be totally flat or almost flat.

What is the Forex Pivot Points..?

Pivot point is a level in which the sentiment of traders and investors changes from bull to bear or vice versa. They work simply because many individual traders and investors use and trust them, as well as bank and institutional traders. It is known to every trader that the pivot point is an important measure of strength and weakness of any market.

Floor traders love pivot points. They act as magnet for price movements. If you observe how price move during any trading session, you'll notice that price often stalls or stops at pivot points before resuming its movement. To calculate daily pivot points you need High, Low, and Close Price of the previous day.
Here are the formula for calculating daily pivot points: Central Pivot Point (P) = (High + Low + Close)/3
Resistance Level 1 (R1) = 2xP - Low Resistance Level 2 (R2) = P + (R1 - S1) Resistance Level 3 (R3) = High + 2x(P - Low) Support Level 1 (S1) = 2xP - High
Support Level 2 (S2) = P - (R1 - S1) Support Level 3 (S3) = Low - 2x(High - P)

To calculate weekly pivot points, apply the same formula, but using High, Low, and
Close Price of the previous week instead of the previous day.

As you can see from the above formula, just by having the previous days high, low and close you eventually finish up with 7 points, 3 resistance levels, 3 support levels and the actual pivot point. If the market opens above the pivot point then the bias for the day is long trades. If the market opens below the pivot point then the bias for the day is for short trades.

The three most important pivot points are R1, S1 and the actual pivot point. The general idea behind trading pivot points are to look for a reversal or break of R1 or S1. By the time the market reaches R2,R3 or S2,S3 the market will already be overbought or oversold and these levels should be used for exits rather than entries.

A perfect set would be for the market to open above the pivot level and then stall slightly at R1 then go on to R2. You would enter on a break of R1 with a target of R2 and if the market was really strong close half at R2 and target R3 with the remainder of your position.

Mechanical System of Forex Trading

Forex mechanical system trading lets you trade Forex using an automated trading platform. This system comprises of a set of specific rules, which when applied to the Forex market, signals entry and exit points automatically, without any need for input from user or trader.

There was a time when Forex mechanical trading systems were very expensive.The reason was mainly complex software platforms, which were not user-friendly; real-time data feeding was also quite costly.

It used to take a significant amount of time and money to use the Forex mechanical system trading. Additionally, there were very few providers of those systems, so the use of Forex mechanical system trading was very limited.

Today,the picture has completely changed. With the increased popularity of using the Internet and computers, different types of automated trading platforms are available for Forex mechanical system trading.

Basically you have 3 choices:


1. Develop your own trading system using the software.It requires a great deal of understanding with regard to the indicators, the parameters and how they will interact with each other.

2. Take help of a professional to build a system. The expert will code your Forex mechanical system trading according to the trade rules specified by you.

3. Purchase an existing trading system from market. This is the easiest option for any trader.You don’t need to worry about moving averages, oscillators, or some other technical indicator, or price patterns etc.The system will do everything for you.

Forex mechanical system trading is quite appealing to traders nowadays as the system is smart enough to take any trading decisions, even when you are asleep. We know that the Forex market is a 24-hour market and trading is always going on somewhere in the world. With this, you don’t have to worry at all when buying and selling currencies. The system is always ready for you to trade and make profits.

Forex Fundamental Analysis

In this tutorial you will learn how to implement fundamental analysis in your trading style. This is what some people called institutional Forex trading system. You should learn the basic macroeconomic factors that influence global market. This is called fundamental analysis.

There is a great controversy between traders that use only technical analysis and traders that use only fundamental analysis.For me this is only academic. If there is information out there you should carefully watch it. Do not rely only in technicals or fundamentals. Use both. When you have a solid technical pattern that is supported by fundamentals then the chance that you are right is imminent. When technicals and fundamentals show in different directions then you should watch out. Do not be trigger happy with your Forex trading. Wait and see. Forex is not for prophets. You use scientific analysis in order to maximize the chance that you correctly recognize what the market has to give you. Analyze thoroughly, have a solid technical pattern, know the fundamental support of your analysis and you have a nice trading decision. Seize your risk tolerance and you will be a winner.

Every nation has it’s central bank which is responsible for the well being of the economy. Central banks watch some economic factors that affect the economy and adjust their economic policy accordingly. These factors are announced regularly and the exact time
of the announcement is known in advance.These factors are the fundamental indicators of the economy. The most important central banks are FED of USA, ECB of European Union, BOJ of Japan and BOE of United Kingdom. There are many fundamental indicators but there are few of them that are called the “market movers”. They are called so because when they are announced they provide to the market the necessary steam to move. That happens because they have a great impact on economy and to traders’ positions also.

The most important thing you have to know about fundamental analysis is the market expectation of an indicator. Some analysts provide a probable number of the indicator to be announced. This has an impact to the market and traders are positioned accordingly. When the indicator is announced it affects the market only when it is much different that the market expected. That happens because every available to the public information is already taken into account. When the new information is announced then it has impact on the market only if it is different than expected.

Build up your plan.Know in advance what important fundamental indicators are to be announced the following week. Learn the expected number if it is available and try to forecast what will happen if it comes in better of worse figure. This is difficult for the beginners but after studying it will be easy.

Best Time to Trade The Forex Market

The one thing that marks a forex market is its dynamic nature. Here fortunes change in seconds and minutes. If taken positively, this feature also allows a trader to enter the market many times in a single day and garner some profit for himself.

Timing is one thing that would actually determine your success in the forex market and that is why it is essential to find the best time to trade the forex market, the best time with regards to activity, volume of trade etc.

There are some salient features of forex market and until and unless these are understood one cannot find out the best time to trade the forex market.

Forex markets work 24 hours. It starts from Sunday 5 pm EST through Friday 4 pm EST and rollovers at 5 pm EST. Forex trading starts from New Zealand and then is followed by Australia, Asia, the Middle East, Europe and America. The most prominent forex market is undoubtedly the US and the UK. They account for more than half of the total market transactions.

If it comes to major forex markets, London, New York and Tokyo would win hands down. Around 75% of market activities in the New York markets are witnessed in the morning hours while the European markets are still open. And if you want to know when the forex trading is the heaviest, well look for the time when the major markets overlap.

One thing must be evident from this discussion. There is never a cease down in the forex market. When its day for you, its night for someone else. Markets close somewhere and simultaneously, markets open somewhere else. That is what offers traders this tremendous opportunity to make some serious money.

Forex market is characterized by high liquidity and high flexibility and as such traders get the freedom to make choices as per their wishes. They are not bound by the whims of the markets.

So, when you try to determine the best time to trade the forex market this information would prove very useful. Trades have almost always the same relative frequency and
until the forex market remains open, the probability of finding a trade whenever you look is almost the same.

Forex Open Market Timings are Given Below :

Markets and the US markets open simultaneously. This is the best time to trade the forex market.

Let's have a look of the timings of some of these markets.

• New York Market : 8 am – 4 pm EST
• London Market : 2am to 12 Noon EST
• Great Britain Market : 3 am – 11 am EST 
• Tokyo Market : 8 pm – 4 am EST 
• Australian Market : 7 pm – 3 pm EST

Just have a look at the above schedule carefully. What do you see? Yes, there are two times when two of the major markets overlap during the trading hours-between 2 am and
4 am EST (Asian/Europe) and between 8 am to 12 pm EST (European/N. American). This is the time you have to target to make profits, the best time to trade the forex markets.

Standard Deviation ( Why It's So Important for Forex Traders)

Standard deviation is a concept all Forex traders should understand as part of their Forex education. In fact if you don’t understand it and know how to factor it into your trading strategy you are unlikely to win long term. Let’s look at it.

Standard deviation is logical, easy to understand and will help you time entries better and define targets for trades, as well as spotting important trend reversals.

It’s a simple and powerful concept and all forex traders should know how it works and how to take advantage of it.

The real problem that traders have to overcome when trading forex is overcoming volatile price moves that can stop them out to soon or with losses – if you learn how to deal with standard deviation, you will enter with better risk reward and get stopped out less often.

3 Important Ways to Use Standard Deviation

So how can you incorporate standard deviation in your forex trading? The answer is it is useful for:

1. Picking important market tops or bottoms i.e look for highly volatile prices that have spiked to far from the mean.

2. Targeting entries within trends - if for example, prices spike away from the mean to
far, they will fall back to the average eventually. If the trend is strong you can target entry at the mean price.

3. If prices are trading in a narrow range and suddenly high standard deviation pushes prices away from the mean, you can trade with the break.

If you want an easy tool to apply to help you apply standard deviation in your trading - looking no further than the Bollinger band. Most major chart services plot it and its easy to use – we don’t have time to explain it all here so see our other articles.

The Real Enemy for Traders

Is not picking trend direction, it’s entering with the best risk reward and dealing with volatility if you have understanding of standard deviation you will be able to deal with the enemy of volatility, harness and control it, and use it to achieve currency trading success.

What is Standard Deviation..?

Standard deviation is a statistical term that refers to and shows the volatility of price in any currency. In essence standard deviation measures how widely values are dispersed from the mean or average.

Dispersion is effectively the difference between the actual closing value price and the average value or mean closing price.

The larger the difference between the closing prices from the average price, the higher the standard deviation and volatility of the currency is. On the other hand - the closer the closing prices are to the average mean price, the lower the standard deviation or volatility of the currency is.

Technical Calculation

Here is the technical bit don’t worry if you find it a little complicated we will simplify things in a minute – here is the calculation:

Standard deviation the square root of the variance, and the average of the squared deviations from the mean.

High Standard Deviation is present when the price of the currency studied is changing volatile and has large daily ranges. On the other hand, low Standard Deviation values
take places when currencies are range trading or in consolidation i.e. when prices are more stable and less volatile.

Spotting Big Contrary trades

Major tops and bottoms and important trend changes are accompanied by high volatility as prices reflect the psychology of the participants and greed and fear push prices away from the fundamentals.

If you look at any forex chart you will see price spikes caused by human emotion and they are not sustainable and prices tend to return to more realistic levels after periods of high volatility – you will often here the term blow off top or bottom where prices make one last volatile surge and reverse.

Best Forex Trading Indicator

Most Forex traders would agree that currency trading can be very difficult at times and earning consistent winnings are hard to come by for most. As a result, I have attempted to provide an easy to follow but extremely useful Forex trading strategy. The Relative Strength indicator (RSI) is a very helpful tool in the Forex trader's arsenal. This oscillator is usually used on the basis of 14-day, 9-day and 25-days. Let's take a look at the best
way to use the RSI and how this forex trading indicator can make you consistent winnings.

With regards to the Forex market, the Relative Strength Indicator shows the forex market activity in terms of if it is over bought or over sold. The RSI provides the Forex trader with an indication in terms of the direction the Forex market is moving. One of the great advantages of this indicator is that it is a leading indicator and as a result this indicator shows forex traders what the market is going to do, allowing traders to act accordingly.

It is important to remember that the greater the RSI number, the greater resulting over bought market there is. Of course the opposite is true: The smalle4 the RSI number, the more over sold it is.

So how does this really help us on the Forex market? It is an exceptional tool when looking for micro reversals as well as macro reversals in the Forex market.

9 Common Point of Forex Trading (Which Helps to Protect Profit and Prevent Loss)

When trading forex, there are several order types that the retail trader can place in the market place to protect themselves from adverse market conditions and to capitalize on opportunities that the market often provide. We will start with the basic orders that
should be available in any trading platform. For beginners, you should keep to the simple types until you get comfortable with your trading platform. Never force yourself to take any trade for the sake of playing with order types.

It can be said that all orders in the market place boils down to Buy or Sell orders. Remember that when trading currency pairs you are selling one currency and simultaneously buying another. Here are some of the common order types:


(1) Buy Order : Place this order when you anticipate that the market will rise. Often, you have to provide some parameters with your buy order. For instance, do you want to buy the currency pair at the price it is currently trading at, or do you have a particular price in mind? What if your order cannot be filled at the price you are specifying, what price range is comfortable to you? This is called slippage. For example, the GBP/USD is
trading at 2.0190 and you anticipate that it will go up higher; you can place a buy order to buy at 2.0190. However, there is no guarantee that you will get in at that price, many brokers will require that you specify a slippage. Continuing with our example, suppose, you are comfortable buying as low as 2.0185 or at most at 2.0195, then you would
specify a slippage of 5 pips. This is for your protection. Suppose just before your order becomes active, their is a news event, that makes GBP/USD to drop down 50 pips, are you still willing to buy? - maybe the trend has now changed downwards, your answer may be no. In addition, you must specify the time range when the order will be active. Your buy entry price should be dictated by your trading strategy or system.

(2) Sell Order : Place this order when you anticipate that the market will fall. Sell order have the same kinds of parameters we discussed under Buy Order.

(3) Market Order : You want to get in or out of the market at the current prevailing price. Execution is typically guaranteed, but price is not. A market order ensures that you will get into or out of the market.

(4) Limit Order : An instruction to execute an order if a market moves to a more favorable level (i.e. an instruction to buy if a market goes down to a specified level or to sell if a market goes up to a specified level. Execution is typically not guaranteed. Your broker will use their "best efforts" to get your order filled. This order can be used to enter or exit a position.

(5) Stop Order : An instruction to execute an order if a market moves to a less favorable level (i.e. an instruction to buy if a market goes down to a specified level, or to sell if a market goes up to a specified level. A Stop Order is often placed to put a cap on the potential loss on an existing position; which is why Stop Orders are sometimes called Stop-loss Orders. Never trade without placing a Stop-loss order. A trade you think has all the right ingredient for success may turn into a fat loss right before your eyes. Always protect yourself so that you can be alive to trade another day.

(6) Trailing Stop Order : A trailing stop order is similar to Stop Loss order. The only difference is that you are already in profit and you want to protect your profit. Trailing Stop Order then allows you to configure your stop order to continue to follow the price movement in real-time by specifying the distance in pips you would like your stop to move. For example, you have a long USD/JPY position, which you bought at 111.50 and you set a Stop Order to sell USD/JPY at 111.10, in case USD/JPY starts to fall. This Stop Order will close your position with a 40-pip loss if USD/JPY drops to 111.10. However, suppose USD/JPY moved up to 111.90. You can move your Stop Order to sell at 111.70 which will luck in a profit of 20 pips for you in case USD/JPY were to stop its upward movement.

(7) Good till Canceled Order (GTC) : As mentioned earlier, when you place an Order,
you must specify for how long the Order is to be valid. The GTC Order is a very common type of Order; it remains valid, 24 hours a day, until you cancel it, or it is executed. It is the trader's responsibility, not the dealers, to remember there is an open order.

(8) Day Orders : Day Orders are good until 23:00 CET time.

(9) Order Cancels Order (OCO) : Also known as One Cancels Other. After entering the market, a limit order to protect profits, and a stop-loss order to limit losses can be placed. When either the limit or the stop order is executed, it will cancel the other order automatically. For example, you sold EUR/USD at 1.2290, looking for a short-term move to 1.2260. However you decide that if EUR/USD moves above 1.2310 you want to cut your loss, therefore you put on a Limit Order to buy EUR/USD at 1.2260, and a Stop Order to buy EUR/USD at 1.2310 on an OCO basis. This order will close your position with a 30-pip profit if Limit Order is reached first or with a 20-pip loss if Stop Order is reached first. Once one of the orders is executed, the second order is automatically cancelled.

There are other types of Orders available to traders. However, keeping your trading simple is perhaps one of the best secrets of success in forex trading. Making money is what matters, not how complex your order structure is. A rule of thumb is that if you do not understand what the order you are placing really mean, do not place it. It can hurt you really badly.

Manage In Forex Trading

So how do you manage risk in forex trading? Some advisors suggest setting stops in the opposite direction that you're betting the market will go in. These stops will hopefully close out your trade before the market wipes out your entire account. Stops can also be used to capture and hold profits if the market is going up and down again, assuming that you've chosen up as your prediction. Other advisors add the caution that placing stops too close can limit profits when the market does go strongly in the direction you want it to go in.

Another way of managing risk is to risk money that you can afford to lose. If you're using your rent money, then don't invest in forex. Yet another useful concept is money management. Money management is based on the idea that you will lose sometimes and
if you control the amount that you invest in each position, you will be able to weather the storm of losses. To make money management work, both fear and greed need to be kept in check.

Is Forex Too Good or To Be True...?

The foreign exchange market accounts for about 1.8 trillion dollars in trading a day. Only individual investors do a very small part of this. Banks, Corporations and Governments
do most of the trading. The retail Forex market, a market aimed at the individual investor, has only been around since the mid 1990s. This article will look at the retail forex market, as well as describe the risks that individual investors may face in the forex market.

Forex currencies are traded in pairs; one currency is contrasted with another. For example, the British pound and the American dollar. The stronger currency at the time goes first in the listing scheme. In this case it would listed as GBP/USD. When you invest in this particular pair, you would be anticipating that either the British pound would become stronger than the U.S. dollar and go up, or the alternative; that the GBP would become weaker than the USD and go down.

The two major approaches to predicting the possible moves of the forex market are Fundamental and Technical analysis. Fundamental analysis is based on issues like the state of a country's economy, it's government fiscal policy and it's political stability. Technical analysis is based on past movement of the market and the likely hood of those movements repeating themselves.

The second source of risk in the forex market is the availability of leverage to a degree that is not seen in any other markets. Although leverage of 1:100 or 1:200 is normal, there are brokers offering 1:400 leverage. With this kind of leverage, sizable profits are
possible if you predict the market's movements correctly and large losses if you're wrong.

What your broker will likely do is to allow you to risk only part of your account. Stops will be placed in the opposing direction to the direction that you expect the currency to go in, at the point where your account will cover the losses if the market goes the other way. This way if you're wrong, your gamble will be covered by your account. Of course it will probably use up your entire account.

Some people might advise taking positions going in both directions, however this undermines the idea of trying to learn to predict the likely moves of the market. Furthermore, if the forex market swings up and then down, one position may not necessarily cancel out the other. Your account may be wiped out anyway. Generally speaking, the more positions you take, the greater the risk.

Forex is not a Four Letter Word

You have traded currencies before and like ninety percent of people who have traded forex you lost money. Quickly.Or you had profits and rode them into losses. For you Forex became a four letter word.

Is there a way to make money trading currencies? How do the big banks and hedge funds do it? While there are no guarantees, there are a number of things you can do that will increase your chances of becoming a winning Forex trader.

It is not an easy path to success.Some stories of overnight riches are true but they come with years of preparation and a great deal of tolerance for risk taking.


First you need to decide if you are going to be a fundamental trader,a technical trader or a combination of both.If you choose the former you must pay close attention to the markets. You cannot wake up in the morning,place an order to buy or sell and expect to make money.You must do your research. You should have some working knowledge of the fundamentals of major countries. That is you need to know both long and short levels of interest rates, GDP and growth potential, inflation and of course a the employment situation of a country.

If the charts are what you fancy you should take a course and read a couple of books on technical analysis.Then decide which area is right for you. Will you be a long term breakout trader or will you follow pivot points.Will Fibonacci be your thing or will you stick to RSIs.


Once you have that down you must examine your financials.How much of your net worth are are you willing to risk.What is the maximum amount of money you can lose and not impair your lifestyle. It is probably a good idea to open a demo account with an online broker.That way you can practice entering the various types of orders. You can see in real time how much profit or loss you would have and you can adjust your style accordingly. You need to become proficient in stop orders, limit and market orders so when the real thing comes you will not be nervous or anxious. You can think about one thing only. Trading.

Forex Trading is Like Stock Trading..?

The Internet has made it possible for anyone who is interested, owns a computer and Internet connection, to take up Forex trading successfully, especially if they are willing to invest the necessary time for proper Forex training. Because of this, Forex trading has turned into some craze of sorts with many ill equipped people jumping at it and making nauseating losses.
Traders from all over the world are watching the international money market,especially the dollar movement or trend on their computers, just as is the case with the stock market in which a day trader monitors stock movements on the Dow Jones.

Both the stock market and the foreign exchange markets are based on buying on account of weakness while selling on account strength.So a trader will readily purchase a week dollar and hold onto it, to be sold when the dollar regains its buying power. This is what obtains at the stock exchanges all over the world, brokers buying weak stocks for sell when such stocks appreciate in price. In a nutshell whether it is stock or foreign currencies, the dictum is "buy low, sell high" by pairing two currencies; say the British pound and the American dollar.

However,Forex trading is not an easy road to wealth. In fact,many people have met their ruin in this business,but that is because they did not learn well enough to do things right. In whatever business,knowledge of the rudiments is what will save you from making losses. If you know about stock trading, that same way you should look at Forex trading.

Forex Investing (Rules and How it Works)

Sometimes it`s wise not to be the early bird when investing in forex, instead wait and see what the day will bring before you take action. The 10 A.M. rule is a great example of this concept, and is an example that protects your capital. Let`s say you want to buy a forex stock, for whatever reason; a trend play, or a market rally that you think a currently hot sector will participate in. You know that a great time to buy would be on a gap down,
but the market is in rally mode and instead of gapping down, the forex stock gaps up. But buying the gap up is a bad trade. Now what do you do?

Using the 10 A.M Rule

You use the 10 A.M. rule, and wait until after 10 A.M. for the right forex stock investing time to buy the stock. If the forex stock makes a new high for the day after 10 A.M., then, and only then, should you trade the stock. Of course, you will use stops to protect yourself, like you would on any trade.

Anyone who`s followed the market knows that a forex stock will often gap up early in the morning, only to suddenly sell off and reverse into negative territory. By following the 10
A.M. rule, you avoid the risk of this sudden reversal. If the forex stock does make it to a new high after 10 A.M., there is still trader interest in the forex stock, and it stands a good chance of gaining momentum and heading even higher.

Here is an example of the 10 A.M. rule on a gap up: A forex stock closes the day at $145. After hours, the company announces a two for one forex stock split. The next morning
the forex stocks gaps up to open at $161. It trades as high as $166 before 10 A.M. For two hours after 10 A.M. it trades lower and doesn`t reach $166. At 2 P.M., it hits
$166.50. The forex stock is now safe to buy, using the 10 A.M. rule.

Using a version of the 10 A.M. rule, you could watch for a hot sector to appear in the morning and follow the forex stocks in the sector that are up for the day. If the forex stocks are still making new highs at midday, they stand a good chance of finishing the day near their ultimate highs for the day, and could be good trading opportunities. This also applies in a down market and to stocks in forex that gap down, opening at prices lower than where they closed the previous day. In this situation, you should not short a
forex stock that has gaped down unless and until it makes a new low for the day after 10
A.M.

Using the 10 A.M. rule ensures that you will never end up chasing and buying a forex stock when your chances of making a profitable trade are low. Remember, trading is all about probabilities. The more forex stock investing trades you make with a high probability of success, the more successful you will be. The 10 A.M. rule is a valuable addition to your trading plan, giving you a straightforward way to avoid making costly mistakes and to increase your number of profitable stock investing trades in forex.

Forex Market Order Overview

Just like the stock market, you cannot do anything in the forex market without giving orders. There are some major order types which are very commonly used:


Buy : A buy order will sell the quote currency and buy the base currency at the ask rate. Buying is also called “going long”. When you buy a currency pair, you want the exchange rate to go up to sell it on a higher rate and profit.


Sell : A sell order will sell the base currency and buy the quote currency at the bid rate. A sell order is usually used to close a long position (a buying position).


Short Sell : Short selling means selling something you do not have, and obligating to buy it back. For example, if your trading account is funded with US dollars but you think the EUR/USD rate will go down, then you want to sell it. However, you cannot sell Euros because your account is funded with US dollars. In this case, a sell order will sell this pair short (also called “going short”). When you short sell, you want the exchange rate to go down, so you can buy it back at a profit (you do the well known phrase “buy low, sell high”, but backwards).


Short Cover : Short covering means closing a short position. The actual order is a buying order, and it buys back what you obliged to buy.

Limit : A limit order is a future order that will be done only if a certain condition occurs. If it’s a buy limit, the order will be carried only if the exchange rate is at the limit or lower. If it’s a sell limit, the order will be carried only if the exchange rate is at the limit or higher.


Stop Loss : A stop loss order is placed in order to limit the potential loss of a trade. The stop loss order is executed when the exchange rate crosses a certain pre-set rate. If the position is long, the stop loss order will be executed when
the exchange rate goes below a pre-set rate. If the position is short, the stop loss order will be executed when the exchange rate goes above a pre-set rate.


Take Profit : This is a type of limit order. It is used to take a profit at a certain point,so it will not be lost in case the market changes its direction

Real and Actual Forex Trading

Trading the forex market can be a very satisfying activity, resulting in very big profits. However, in order to trade the forex market, certain knowledge is needed. First, what are ask, bid, and spread.


Ask – how much the broker is asking for selling the pair. It’s your buying price.


Bid – how much the broker is bidding to buy the pair. It’s your selling price.


Spread – the difference between the ask and the bid.


The important number here is the spread, and it is measured in pips:


Pip – the smallest change of forex rates.

For example, the EUR/USD rate is quoted with four decimal points, so one pip on this pair is a change of 0.0001. The USD/JPY rate is quoted with two decimal points, so one pip on this pair is 0.01.

The spread is important because it shows you how much the exchange rates need to move in your favor before you break even (no profit and no loss).
The spread is a form of commission, so before you choose your forex broker make sure the spread is about 2-3 pips on the majors (5 pips is OK, but not great). Make sure the
broker does not take any other trading commission.

Inner of the Forex Market

The forex market works in a slightly different way than other financial markets. The products on the forex market are currencies, not stocks, bonds, or any other financial instrument. Profit on the forex market is generated by changes of exchange rates. Usually, forex exchange rates are given with the pair of currencies. For example, you can say that the exchange rate of EUR/USD is 1.5756. The first currency, the Euro in this example, is called the base currency. The second currency, the US dollar in this example, is called the quote currency. This gives the definition of the exchange rate. Exchange Rate – how much of the quote currency is needed to buy one unit of the base currency. For example, at the EUR/USD rate stated above, it takes 1.5756 US dollars to buy 1 Euro. There are seven major currencies that form the biggest part of traded pairs. They are also called “The Majors”. These currencies are: USD – United States Dollar EUR – Euro CAD – Canadian Dollar CHF – Swiss Franc GBP – Great Britain Pound JPY – Japanese Yen AUD – Australian Dollar Every currency is given a symbol in two parts: the first two letters are the country code, and the last letter is the first letter of the currency name. For example: ILS – Israeli Shekel INR – Indian Rupee NZD – New Zealand Dollar

Introduction of Forex

Forex is an acronym for Foreign Currency Exchange. The forex market, also known as the currency market, is where currencies from around the world are being traded.


There are many participants in the forex market:


• Central Banks : Their job is to stabilize the economy of their country, which includes controlling inflation (price rises) and avoiding recessions. They do it by setting an interest rate (in the United States it is called the “Fed interest rate”) and trading the forex market.


• Commercial Banks : These institutions are the actual traders in the forex market, and all trades go through them. They often trade currencies as a speculation in order to make a profit for themselves.


• Importers and Exporters : Companies that do business with other countries need to change foreign currencies into their own and back. Importers pay in local currency, and exporters receive payments in foreign currencies. Both types need to trade currencies back and forth to make their accounting easier and avoid changes in exchange rates that may harm their business.


• Private Speculators : It is said that over 90% of the activity in the forex market is done by private speculators. These private people or funds trade the forex market in order to make a profit

Forex Trading Tips

Why do hundreds of thousands online traders and investors trade the forex market every day, and how do they make money doing it?

This two-part report clearly and simply details essential tips on how to avoid typical pitfalls and start making more money in your forex trading


1. Trade pairs, not currencies :

Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.

2. Knowledge is Power : 

When starting out trading forex online, it is essential that you understand the basics of this market if you want to make the most of your investments.

The main forex influencer is global news and events. For example, say an ECB statement is released on European interest rates which typically will cause a flurry of activity. Most newcomers react violently to news like this and close their positions and subsequently miss out on some of the best trading opportunities by waiting until the market calms down. The potential in the forex market is in the volatility, not in its tranquility.

3. Unambitious trading :

Many new traders will place very tight orders in order to take very small profits. This is not a sustainable approach because although you may be profitable in the short run (if you are lucky), you risk losing in the longer term as you have to recover the difference between the bid and the ask price before you can make any profit and this is much more difficult when you make small trades than when you make larger ones.

4. Over-cautious trading :

Like the trader who tries to take small incremental profits all the time, the trader who places tight stop losses with a retail forex broker is doomed. As we stated above, you have to give your position a fair chance to demonstrate its ability to produce. If you don't place reasonable stop
losses that allow your trade to do so, you will always end up undercutting yourself and losing a small piece of your deposit with every trade.

5. Independence :

 If you are new to forex, you will either decide to trade your own money or to have a broker trade it for you. So far, so good. But your risk of losing increases exponentially if you either of these two things,Interfere with what your broker is doing on your behalf (as his strategy might require a long gestation period Seek advice from too many sources - multiple input will only result in multiple losses. Take a position, ride with it and then analyse the outcome - by yourself, for yourself.

6.Tiny margins :

Margin trading is one of the biggest advantages in trading forex as it allows you to trade amounts far larger than the total of your deposits. However, it can also be dangerous to novice traders as it can appeal to the greed factor that destroys many forex traders. The best guideline is to increase your leverage in line with your experience and success.

7. No strategy : The aim of making money is not a trading strategy. A strategy is your map for how you plan to make money. Your strategy details the approach you are going to take, which currencies you are going to trade and how you will manage your risk. Without a strategy, you may become one of the 90% of new traders that lose their money.

Invasion of Privacy

It refers to the interference in one's personal life without the consent of the receiver. Interference or intrusion in one's sensitive matters without the consent of the receiver invades the privacy of that individual and hence is undesirable and unethical. Prior permission and authorization is necessary to use one's proprietary data, personal records, highly personal information etc.

Example:

• Asking about age, martial status and income of an individual in an interview or survey


• Asking about personal phone number of the respondent.


• Disclosing confidential information about the person without his consent.

Features of Modern Economic Market

Following are the salient features of the Modern Economic Markets.

Flow of Information:

Modern Economic markets are highly informed. The flow of information is uninterrupted in modern markets. Buyers and sellers have choice about the products they want to buy. Hence, they can make informed decisions which are likely to be economically beneficial to both buyers and sellers.

Modes of Payment:

Modern Economic markets have a full array of instruments for payment and collection. Pay order, Traveler Cheques, Demand Draft, LCs etc ensure that trade can take place without any barrier between extreme frontiers of the world.

Modes of Transaction:

Physical meeting of buyer and sellers in the market is no longer a requirement for transaction. Electronic markets equipped with necessary technical infrastructure enable people to conduct business virtually over a telephone line, Internet, Extranet etc.

Fraud

Fraud has been defined as" The intentional mis-representation by one party to a contract of a material existing fact which is relied upon by the other party to have or his injury is fraud'

Element of fraud include:

1. A mis-statement made with the intention to deceive.


2. The mis-representation of a material existing fact.


3. The deceived person justified in relaying on the statement.


4. This person was damaged (in the legal sense) by the false statement.

Defamation

Defamation has been defined as " the unconsented and unprivileged" of a false and malicious statement which tends to Enjure one's, character, fame or reputation". Slander is a kind of oral defamation, whereas a libel is a kind of written defamation. In a defamation suit, truth is always considered as a defence but there are exceptions too. Similarly, some false statements may be either absolutely privileged or conditionally privileged. It is so because the words "Publication" and Privileged" have important legal significance. The legality of these words must be clearly understood.

Qualities of Good Businessman

A businessman must possess certain qualities if he has to stay in the market, no matter, how much capital or funds he owns. According to economist a business is survived if the input of four factors of production, viz, land labor, capital, and entrepreneur are in the best possible proportion. However, in discussing the qualities of a good businessman we will concentrate only on entrepreneur leaving other factors. The reason is that the successful use of land, labor, and capital wholly depends on the entrepreneur who is the organizer of the business. He must be creative, ambitious, able to work under pressure. He must possess risk-assuming courage. Not only should he satisfy his customer, shareholders,and employees but also he has to deal successfully with suppliers competitors, and the government.

Chamber of Commerce

Definition:

The first Chamber of Commerce was established in 1599 in Marcelle, Italy and in Pakistan it came into being in 1984.

Chamber of commerce is an association of business that safeguards the interest of its members. It may be established voluntarily by the private sector or under the patronage of the government. London Chamber of Commerce is well-known businessman's association which is established in the private sector. It, in addition to traditional functions, offers business and commercial courses, conducts examinations, and issues certificates to the successful candidates.

The chamber of Commerce represent the grievances, problems, and issues of the business community to the government and tries to get them solved. In national and provincial budget formulation it forwards many valuable plans, schemes, and suggestion to the government.

The chamber provides its members treasured advice, important information, and effective solutions to their difficulties. Its services include provision of custom rules, market information, labor, commercial and industrial polices prepared locally or abroad.

Its members include bank, insurance companies, importers, exporters, hotels, wholesalers, retailers, etc.

Telecommunication

Introduction:

The Modern business, fast exchange of information and ideas, rapid contacts, radio, and TV programs all depend on telecommunication.It refers to the transfer of information and messages by electromagnetic means. Electromagnetic means are radio waves, also known as wire. The word "Electromagnetic" is the combination of electric and magnet which were earlier considered separate things. However, Maxwell later, discovered that both are different sign of the same things. According to him, magnetism is the result of relative motion of electric field.

Telecommunication includes telegraphy (telegram), radio, TV, Telephones, satellite receivers etc. The telecommunication system is made of a transmitter, a receiver, and a transmission channel (a medium).

Transmitter:

The transmitter sends the encoded message through a modulator. A modulator is a device which carries the message in the form of signals on an electromagnetic wave or an electric current.

Transmission Channel:

It is a wire, optical fiber, or radio waves, The waves work within a specified frequency range known as bandwidth. A single channel has the capability to send many signals at a time provided a multiplex is used. A multiplex is a device which combines many signals and used in all telecommunications.

Receiver:

It decodes the signals into desired form of message as sound, printout of the computer or teleprinter, or an electric signal to a computer. The receiver may have a noise or distortion if the signal takes two different routes instead of one desired. 

Commercial/Business Correspondence

Business correspondence refers to letters and is two way communication in writing between the sender and the receiver. It furnishes an effective means through which the sender conveys ideas, information, needs, perception, understanding, views and news. It bridges the geographical distance and provides and economic means for mutual exchange and fulfillment of needs. Many other media, as phone , fax , Internet, e-mail, telex, telegram, are also an effective means for quick transfer of information but they are costlier than letters that also provide a sound basis for legal action and form a permanent record for future reference.

Parties to Modaraba

The following are the parties to the modaraba:

1. The Investor (Modarib) : one who invest his money in the modaraba business.


2. The Company : It is the modaraba company which offers labor to multiply the investment.


3. The Bank : It acts as a trustee between the investor and the modaraba company. It should be borne in the mond that the relations between the investor and the modaraba company is in no case similar to that of the lender and the borrower. In case of lending, interest and the principal amount must be returned irrespective of profit or loss.

Situation of Modaraba

The three situations may be summed up as follows:

1. In case of profit both the investor (e.g individual) and the modaraba company will gain. The gain will be prorata to the investment.


2. In case of no profit. no loss, no one will gain, and the capital of company will be the loser because its labor has gone wasted.


3. In case of loss, the investor will lose his money prorata to his investment, and the company will only lose its labor.

Modaraba

It is another form or mode of Islamic financing. it is more popular and practiced than musharaka. Modaraba can be defined as, " an agreement between the investor (Modarib) and the modaraba company allowing the company to carry out business with the invested amount and pay profit to the investor according to the ratio of the borrowed amount" Here the lender is the capitalist, individual, or the investor. The borrower is the business corporation operating on the modaraba principle. If the modaraba company ( the borrower) earns profit, it will pay prorata profit to the lender, In case of no profit, no loss the borrowed or lent amount will remain intact and hence no profit will bepaid to the lender. In this case, in fact, the borrower ( the modaraba company ) is the loser since its labor has gone wasted. In the third possible situation, the modaraba company ( the borrower) may suffer a loss. here the lender will lose the money to the maximum extent of his investment. The loss will be prorata to his lent amount. Hence, the lender is the loser.

Disadvantages of Musharaka

1. It is extremely difficult to change from the system of interest based economy to that of interest free.


2. Undue interference of the lender (e.g the bank) in the borrower's business will be in place.


3. Borrowers suspect that the lender will ever share their losses.


4. The lender will suspect that the borrower will underestimate profits.


5. There will remain mistrust between the lender and the borrower.


6. The borrower's financial secrets will get open to the lender, the fact which may harm the former's business.

Advantages of Musharaka

1. It is completely in accordance with the tenets of Islam


2. Interest which is haram id ridden of.


3. It facilitates the establishment of Islamic society.


4. Conscience of Muslim is satisfied and in peace.


5. Rampant inflation may be controlled.

MUSHARAKA

Musharaka refers to profit and loss sharing between the lender and the borrower completely doing away with the interest. It is an arrangement of financing in which parties offer funds, efforts, or/and skills. Profits are shared among them according to the rate agreed upon. In case of loss, only one party suffers it which is the investor. In Pakistan, the Musharaka Financing mode has been launched by commercial banks to meet their working capital requirements of the trade and industry. The banks carry out musharaka a functions out of profit and loss accounts (PLS) deposits.

The borrowers receive interest-free loan on the basis of equity participation and profit or loss from the bank or any other financial institution. The lending bank enjoys teh right of participation in the borrowers business to the limit of amount of loan. In other words, the borrower is liable to the bank (the lender) up to the limit of invested (i.e borrowed) amount. In case of profit (or loss) the lender will receive his prorate share or profit (or suffer a loss). The agreement between the investor and the company is referred to as Musharaka Investment agreement which stipulates that the operation of the musharaka will be carried out by the borrowing company. The bank as a trustee will watch, evaluate, and supervise the performance. 

Modes Of Operations

Islamic Banks employ their funds in the following interest free loans:

1. Modaraba        (Venture Capital or Project Finance)


2. Musharaka       (Partnership / Profit and Loss Sharing)


3. Leasing             (Financial Leasing)


4. Bai-Salam         ( Deferred Payments Sales)


5. Murahaba         (Financing on cost plus basis)


6.