Tuesday, 29 May 2018

How to Find Shariah Stock Investment



Investing is one of the most discussed topic for everyone, most of Muslims have the added challenge of ensuring of their investments are Shariah compliant. The strict prohibition of interest in Islam makes many conventional investment limits to observant Muslims. Shariah based stock investment is in accordance to the requirements of Shariah laws and the principles of Islam.
There are three basic rules which needed to be adhered to investment from the standpoint of Shariah.
1.      Absence of interest
2.      Potential for ‘unethical concerns’ in the investment mix.
3.      Nature of the contract between the parties involved.
Basics of Shariah based Stock Investment:
For an investment to be HALAL, it must be in equity instead of debt. Investing in equity means having partial ownership by buying shares of the company,  instead investor giving a loan and getting paid interest regardless of how the company does, with equity, the investor shares in the profit if the company does well and shares in the losses if it does poorly. 
The most common way to get equity of a company is to buy its shares on the stock market.  Not every company who is offering its equity through selling shares in the stock market represents a HALAL Investment though. Strictly no investment also in the stocks that engage in short selling and the use of leverage products is Shariah Compliant.    
Shariah based Stock Investment in Pakistan:
If you have the means and the capital, and you really wanted to invest in Pakistan Stock Market, but how do you ensure that your investments are Shariah compliant? Fortunately, Pakistani investors need not to remain concerned anymore, which stocks pass the filter of Shariah compliance.
KSE Meezan Index (KMI-30) is Islamic stock market index in PSX – Pakistan Stock Exchange. In Pakistan thirty companies that have been screened for Islamic Shariah Criteria.  The index was introduced in 2009 and recomposed last from Jan 2018 with the guidance of qualified and well reputed Shariah experts when Shariah compliance of stocks is done.
A stock market index is a measurement of the value of a certain section of the stock market.  What Muslim investors want to know is not the value of that index or how that value goes up or down, but exactly which companies are included in the Islamic index. Even today Pakistani’s or across the world Investors can access Azeetrade.Com a division of AZEE Securities online trade app developed which tells you all the index watches of Shariah Compliant Stocks. Company's stock symbol in the trading app's function will pull up all the list of stocks.  
Such resources make it much easier for Muslims to invest with peace of mind knowing that their investments are Halal.

Wednesday, 9 May 2018

Want to trade in Stock Market? Know the basics of Technical Analysis



It’s important to learn about the basics first before explore the world of the technical analysis of stocks. Technical analysis can help you make sense of the way investor behavior drives market prices. No matter how much technical analysis basics research that someone does, there is absolutely no way that anyone can predict what a stock is going to do. You can only predict what is probable to happen, based on the indicators, and then trade what is happening.

Technical analysis is an art of using historic price movements of a stock/index to get direction of future price trends. More than absolute prediction it aids traders to get an indicative on price of a stock/ index in short term.

The stock market is a collection of traders and computers from around the world that are buying and selling stocks.  Every trading decision that traders make leaves a digital footprint. This footprint forms a
chart patterns such as bull flags, bear flags, ascending triangles, and many more other patterns. Sometimes there will be multiple patterns within patterns! 

The following parameters are used for analyzing charts:-

Price:  The market price is the current price at which an asset/share/commodity can be bought or sold. It is the highest amount a buyer is willing to pay for a particular stock.

Volume: Volume is one of the most basic and most beneficial parameter to understand while reading a stock/index chart. Volume is the total number of shares traded in a particular stock throughout a specific time. A drastic change in traded volumes can indicate a rise or a fall in prices.

Trend: After volume, trend is the second most essential tool for a trader. A combination of trend and volumes aids the trader to decide on whether to enter or exit a particular trade. Trend is basically classified in three types, uptrend, downtrend and sideways trend or consolidation.

Trend-line: The oldest and easiest way of determining the trend is with a "trend line." All that is required is two support points to draw an uptrend or two resistance points to draw a downtrend.

Support level: is the price around which previously, a particular security/commodity finds incremental demand. Traders use this level to enter the stock.

Resistance level: is a price around which a stock finds incremental sellers. Traders use these levels to exit a long position or even short sell a security.

Friday, 4 May 2018

Understanding Stock Quotes:


Investing wisely is something everyone would like to do. Once you open online trading account complete your KYC on-boarding formalities, you are good at trade in the stock market. You can trade online from the convenience of your home, if you have activated your account. Here is one term you frequently hear with respect to the stock market one must know before you start trading.
Stock Prices & Quotes: 
The typical stock quote contains more information than just the current market price per share. It often reveals where the price has been in the past and where it might be heading in the future. A quote can also help the analyst to understand the current stock price relative to historical prices.
To make trading easier for the investor, every stock quote contains a set of standardized information.  They disclose both the current trading price for a stock as well as a stock's bid and ask prices.
Bid Price of a Stock:  the price that someone has offered to pay for a stock.
Ask Price of a Stock:  the price at which a holder of a stock is willing to sell that stock.
One of the purposes of a stock exchange is to match buyers with sellers.  Beyond the current price of a stock, there are two more elements that usually accompany the quote, the most recent price relative to the prior day's closing price, and the percentage change in price from the prior trading day.
An investor or any Institution can access Financial Portal by AZEETRADE.COM a division of AZEE Securities provides additional information along with a stock quote such as historical price data.  This may include the daily high and low, the 52 week high and low, as well as the previous close and the day's opening price.
Daily High and Low:  the highest and lowest selling prices for a stock during the current trading day.
52 Week High and Low:  the highest and lowest selling prices for a stock over the previous 52 weeks.
Previous Close:  the price of the stock at the close of the previous trading day.
Opening Price:  the price which was paid for the first shares of stock traded on the current trading day.
By understanding the historical price information relative to the quoted stock price, investors can, at a glance, get a better feel for where the stock is trading relative to the recent and distant past.