My Investing Advice
- Thread starter Hilmaam
- Start date
First who should not be investing. If you have a bunch of debt you should be worried about paying it off first. Paying interest on debt is bad financially and bad for your deen. Pay off your debt!!!
2. You should have 6-8 months worth of expenses in a checking account. This is in case you lose job, have emergency or have health expenses
2. You should have 6-8 months worth of expenses in a checking account. This is in case you lose job, have emergency or have health expenses
If you are debt free and have decent money saved up now it’s time to invest
my second warning there is fine line between investing and gambling. It’s so small many don’t know when they cross it. There is gambling epidemic and u can even see it in Robinhood app where they push meme stocks and meme coins. It’s gotten so blatent they even allow people to bet on elections and March madness basketball. Gambling is haram and it will ruin you financially
my second warning there is fine line between investing and gambling. It’s so small many don’t know when they cross it. There is gambling epidemic and u can even see it in Robinhood app where they push meme stocks and meme coins. It’s gotten so blatent they even allow people to bet on elections and March madness basketball. Gambling is haram and it will ruin you financially
Don’t day trade or try and pick stocks focus on investing in etfs. The other bad thing about day trading is it’s taxed differently when you hold for less than year gains are taxed as income. When you hold for over a year it’s taxed as capital gains tax which is 15%. This is major cost difference
Only 13% of day traders maintain consistent profitability over six months, and a mere 1% succeed over five years.
Only 13% of day traders maintain consistent profitability over six months, and a mere 1% succeed over five years.
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Study this story in detail it’s years worth of data and experience summarized in short article
www.investopedia.com
Buffett's Bet with the Hedge Funds: And the Winner Is …
In 2008, Warren Buffett placed a million-dollar bet that an S&P 500 index fund would beat the funds of funds hedge fund managers would select.
If you want to pick specific stock or crypto because you are experienced don’t go in for more than 10% of your investment. Crypto is very speculative and so are penny stocks people like to dabble in. Blue chip stocks are the best but buying individual stocks still risky and putting all your eggs in one basket
Garaad Awal
Former African
Made some decent money on puts the last few weeks. Thank you Orange man
lol this is the gambling I am talking about. This is not investing your are betting market will go down. Options are haram your are not investing in anything but betting using leverage. When u play around in haram it don’t end well
Time is your best friend when investing . Hold for long term and buy when people panic. Stocks have intrinsic value and emotional component . Sometimes pricing is skewed because of human emotio you can have bubbles and you can have fire sales. If you will need your money soon and can’t hold for long term then continue saving until you have disposable money you can invest for long term
Long term you see growth in form of the stock value as well as dividend. Dividends are payments companies make out to shareholders based on profit each quarter. This is how Warren’s buffet stays rich. He has stock like cocoa cola that always pay good dividends. He collect about 4.5 billion a year in just dividends. the stock price can stay flat and he will still rake in money
Garaad Awal
Former African
In my case it isn’t gambling but I can see why see in many cases it can be seen as gambling. Like gleeful idiots who didn’t learn anything about options but want to start trading 0dte contracts (take a look at WallStreetBets).
You can have covered call which involves owning shares of a stock and selling (writing) call options on those same shares. This strategy is typically employed when an investor has a neutral to slightly bullish outlook on the stock.
A covered put involves selling shares of a stock short and simultaneously selling put options on those same shares. This strategy is typically employed when an investor has a neutral to slightly bearish outlook on the stock.
That is your opinion and the opinion of the scholars you follow. I am not of the opinion of trading options or any derivatives are considered haram unless someone is using options as a substitute for traditional gambling. There’s a big difference between an actual trader and the greedy gambler on wallstreetbets with no strategies or insights.
My biggest advice is the most valuable investment you can make is in yourself. Get educated and learn valuable skills. Trade school, university , skilled athlete whatever you choose this is how you willl make the most money over your life time by having career or business. Stocks and other investments is just putting your money to work and making side income
if I had kids would push them into STEM and STEM adjacent fields like pilots or something
if I had kids would push them into STEM and STEM adjacent fields like pilots or something
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Garaad Awal
Former African
Let’s agree to disagree. I don’t see any value in derivatives trading.
I agree with you on this it’s very tricky and I advice people to do there homework on what they investing in. There are sharia compliant etfs but still people should do research
Beginner's Guide to Halal ETFs & Islamic Finance
Explore our beginner's guide to Halal ETFs and Islamic finance. Learn how to invest in Shariah-compliant assets for a secure financial future.
blog.islamicly.com
Yes, Hilmaam advices are good in times stability, but now, every investor is bleeding and those who made puts trade are winning, some even paid their debts off in the last week.
NordicSomali
VIP
You should have a long term horizon for your investing (5-10 years). Trading is fine, some people here made money with options.
No, you still invest if you have debt while at the same time paying down that debt. The market moves up over the long run. Maybe you should even buy more when stocks reach bottom.
No, you still invest if you have debt while at the same time paying down that debt. The market moves up over the long run. Maybe you should even buy more when stocks reach bottom.
TheLand
VIP
Security Analysis by Graham and Dodd is better but very technical and drya good bookis the intelligent investor by Benjamin Graham. It’s old but has some good lessons
The truth seeker
Get Rich or Die Tryin'
Buy treasury bonds interest rates are being reduced they outperformed stocks the last 10 years anyways
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