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The Investments Thread

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I did Investopedia in my Accounting class. Wal-Mart did well for me. Slow and steady increase. So did Target, although I think one day I had a bit of a shocker when it fell.

 

There was a really cool site we went on that said different types of industries, all the companies within it, and their size and stuff. Super cool :yes:

Yeah it's a great tool to try out investment strategies. Yeah I think that website is Yahoo Finance, they have charts detailing market cap, return on investment, dividends, yearly growth, projected growth, etc.

This is awesome. I anticipate good things from this thread brother. Don't let it die an undignified death of those other threads that haven't been updated within 30 days.

 

Plus I seriouly need to learn more about this stuff.

Inshallah sister! You should try with Investopedia its great.

It's quite easy to learn the basics, but investments get far more complex with things such as ETFs, options, negative returns stocks, etc. It is fascinating stuff and honestly if you can make a yearly return of 20% you're beating most of the fellas who pay top $ to have accounts on the Street lol.

Can someone explain Islamic Investment?

Investment is investment. Us Muslims do it the same as everything else. Whilst our motives, goals and ideas may be different, we are the same as everyone else. There do exist specialised markets catered to Muslims, I remember reading about some halal portfolios and what not developed by some investment firms, and also sukuk markets in Muslim countries.

soo i have 100k

 

 

i bought 100 wmts cuz everyone needs food

 

but i typed in tesco (see a pattern) and 3 diff things came up. where is the tesco i want.

 

i realize tesco is doing badly atm, im hoping if i buy them now theyre low value and they cna go up

Investopedia only shows American and Canadian companies bro. Sorry, no Tesco there.

Look at what the Tesco execs are doing. What decisions are they making? Is opening more chains going to be profitable? Etc.

google and apple are like 10 times more expensive than anything else

The cost of investment really lies in the returns you get. These companies stocks carry more risk as you have less room to diversify, but they also give you great returns. It doesn't matter what the price of the stock is, you still have the charges from the broker and also you have lesser returns on some stocks.

Some of the risque guys in my class just bought apple stocks. Their entire portfolio was Apple. It was like, "Wow, okay.." but they ended up doing really well cuz they made a big profit on the fewer # of stocks they had. At the same time, I think the point was to diversify and decrease risk that way, which they ignored.

Apple was doing good. Then it did crap. I remember cos I made a portfolio of a ton of Apple options and it lost so much haha. Most consumer technology firms are risky investments and carry lots of risks that aren't apparent at first.

lily can u explain the account number n stuff

 

how much money have i made. i think its 35k profit?

You made $308 profit. But you are $35,601 in debt, hence why your cash is in the negative yet your stock portfolio value is $135,900. If you made $35k in one day bro i'd quit uni, give my tuition money to you and live the rest of my life in a palace! But it is great you are making a profit even though the market is bearish these days. Your account value is $100,300, so after selling those stocks in which you have to pay the broker to do, you will have I guess an account value of $100,100 or something, essentially you'd have made in pure profit $100 in one day. Prior to the broker expenses, you made $308 profit. What matters most is the return on investment your portfolio has, which appears under Annual Return, which will show up after I think two days of trading. Also, trading is only open when the NYSE is open in real life.

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When should I think about shifting my stocks. Is it when the stocks chart is going up and up and is starting to dip a little?

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When should I think about shifting my stocks. Is it when the stocks chart is going up and up and is starting to dip a little?

Some people like to believe in chart patterns, but there are other signals and some patterns mean nothing to certain stocks.

I just lost $2000 ??

Like I said it's a bearish market. Did you think of how the stocks will perform in the long term?

Very, very few people make a massive turnover in a single day of trading bro. It takes time and effort.

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This sounds really interesting.. I must remember to go through this again, I'm doing a module in Computational Finance that uses words like portfolio, notions, risks and hedges and stuff which is pretty much greek to me.. but i need to learn within the next few weeks!! Thanks for the info :)

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This sounds really interesting.. I must remember to go through this again, I'm doing a module in Computational Finance that uses words like portfolio, notions, risks and hedges and stuff which is pretty much greek to me.. but i need to learn within the next few weeks!! Thanks for the info :)

Inshallah this thread can help you some. I advise you stick to your textbook however as I know at universities they examine you on the professors and the textbooks opinion :)

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Inshallah this thread can help you some. I advise you stick to your textbook however as I know at universities they examine you on the professors and the textbooks opinion :)

 

We don't have a text book xD its all computer applications using formulas to figure out what investments are good, how long to hold it and when to sell shares, which is why I thought the info in this thread was excellent! :yes:

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penalizing independent students is kinda lame

Well yeah it happens bro.

We don't have a text book xD its all computer applications using formulas to figure out what investments are good, how long to hold it and when to sell shares, which is why I thought the info in this thread was excellent! :yes:

Oh thats cool. You can still buy a textbook though! Or a guide to investments, some of them are better then others.

what are the meaning of the terms: bearish, bullish, etc?

Bearish means that the market outlook is negative, as in stocks will fall in price.

Bullish means that the market outlook is positive, as in stocks will gain in price.

Neutral means that the market outlook is mostly steady, and there is neutral bearish which means a slow decline and neutral bullish which means a slow increase.

 

If you need information on any other terms please let me know! :)

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Oh thats cool. You can still buy a textbook though! Or a guide to investments, some of them are better then others.

 

Yeah, because the module is one of six, i don't want to waste time learning more than i need to.. not that learning is wasting time.. but when you've got a deadline, i.e. exams it can be considered so.. anything you'd recommend though in particular?!

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Yeah, because the module is one of six, i don't want to waste time learning more than i need to.. not that learning is wasting time.. but when you've got a deadline, i.e. exams it can be considered so.. anything you'd recommend though in particular?!

Fundamentals of Corporate Finance, by Ross, Westerfield, Jordan and Bley is pretty good in learning the basic theory behind some investments.

 

Anyhow folks, I'd like to talk about ETFs. What are ETFs exactly and how do they work?

 

ETF is short for exchange traded fund, this essentially means it is an investment fund traded on an exchange such as the NYSE, NASDAQ, etc. ETFs are a form of derivative (a halal one in many cases, don't worry!), where a fund is made by a company which has made other investments, such as buying/shorting securities such as bonds and stocks, or putting/calling options from certain companies. These are then themselves divided into shares which are distributed in the stock market. They are usually created based on sector, time, region and/or market direction (bearish/bullish), and like any other fund they have a desired target for return in a desired time frame, they also usually are based of market indicators like Russell 1000 or FTSE 100. For example, one ETF I am quite fond of is the Direxion Daily Retail Bull 3X (Stock symbol: RETL), which takes the Russell Retail 1000 and invests most of its portfolio in a long (i.e. buy) position on this index and expects a 300% gain on the Russell Index, i.e. if the Russell Retail 1000 goes up by 1%, this ETF goes up by 3%, conversely if it goes down 1%, this ETF goes down 3%. ETFs can often compound risk and thus increasing it, but if you have a portfolio made of numerous ETFs that are bearish, bullish and neutral in both long and short positions, you tend to decrease risk by having accessibility to far more diversity. I have also heard of Islamic ETFs existing based off Islamic indices.

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Fundamentals of Corporate Finance, by Ross, Westerfield, Jordan and Bley is pretty good in learning the basic theory behind some investments.

 

K jzk, i'll look into it..

My course is an intro to finance, derivatives, binomial trees for pricing options, black scholes theory, hedging and value at risk.. Got a month :hmm: But it'll all work out, thanks again for the recommendation :)

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K jzk, i'll look into it..

My course is an intro to finance, derivatives, binomial trees for pricing options, black scholes theory, hedging and value at risk.. Got a month :hmm: But it'll all work out, thanks again for the recommendation :)

Ah so primarily options then. That book will only be useful for your intro to finance. I do not know much about computational finance in particular as when I analyse investments I take a more qualitative than quantitative approach. I advise you read the initial publication of Scholes theory and then back read into binomial trees. Derivatives will mostly be memorisation of what has more weights in financial products. You can create derivative on the dot if you really want to haha.

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