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.