Investments and Business in Islam
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There are 2 types of analysis that are predominantly used to find and predict the fair price of any share.
Technical analysis = This analysis usually focuses on the performance of the share based on the behaviour of its historical share price without the analysis of the underlying business and financial situation. It usually involves the use of charts to discover patterns arising from historical share prices and hence tries to predict future share price movements.
Fundamental analysis = This usually focuses on the company's underlying business and financial situation. It will incorporate analysis of annual reports, analysis of the company's sector and the overall strength of the economy, when ascertaining whether a share price is fair or not.
If one is to 'play' the stock market using the technical analysis, is it haram? -
isnt the technical analysis same as using this analogy...
You see your favourite team playing against the top of the table in a weekend epl/serie a/primera liga game. You wanna bet heavily on your team. You construct a chart of their previous meetings and the statistics available from OPTA. or maybe other resources...u see the historical records and hence, you can predict the outcome.
Similarity :
Money can be gained/lost in both scenarios (which is not permissible under Islamic Laws and Fundamentals)
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Hello....I happen to read this thread. Im not a Muslim so I apologize if I say anything wrong.
I found these links which have further detailed discussion on the stock market and Islam.
http://muslim-investor.com/mi/stocks.phtml
http://www.islamonline.net/English/In_Depth/financial_issues/index.shtml
http://www.sunnipath.com/Resources/Questions/QA00000374.aspx
http://www.muslim-investor.com/mi/prohibited.phtml
Seems like it's ok as long as you don't turn it into speculation/ gambling.
I admire the strict rules detailed in Islam, reading those links made me think. -
Thanks guys!
