Pick a Strategy and Stick with It
By Saghir Aslam
Irvine , CA


(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities)

Most folks can’t stick to any focused strategy, whether theirs, mine, their friend’s or anyone else’s.  They seek consensus, which is no strategy, and no real diversification.  Why ask me?  Great investors always have a clear strategy and adhere to it for years to follow.  Learn from them.  If you have a strategy that works, ignore me and everyone else and stick to it.  The fact is that years ago, I learned that different investment styles, big caps, small caps, value, growth, each have their own seasons.  There are times when one style works best and times when another does.  My research tells me that this is still a time for the superstock strategy.  Think flexibly, but strategize rigidly.  That is, decide which investment style is right for the present, and, once you have decided the strategy then follow through.  It’s hard but necessary for great success.  Do not deviate unless the circumstances picture change.


One Strategy to Consider

A systematic investment is a good strategy for investing during periods of market volatility.  That is why I would like to suggest an easy investment plan (your own plan).  It enables you to accumulate wealth over time easily and conveniently.

With EasyInvest, you choose the amount (any amount between $100 and $5,000), how often you want to invest (semimonthly, monthly, or quarterly) and from where (Active Assets Account or bank checking or savings account).

By investing regularly, you may smooth out the effects of the market’s ups and downs on your portfolio by buying more shares when prices are down and fewer shares when prices rise.  While this strategy may help to reduce your average cost per share, it cannot assure a profit or protect against loss in a declining market.  Of course, before any investment plan, you should consider your ability to make regular investments regardless of fluctuating prices. 

Before starting with your hard earned money, why not try 21 paper trades?  See what works for you.  What’s good for you.  InshaAllah this kind of practice will make you more profit.

Good luck.  May Almighty God bless your investments so you can donate more for great Islamic causes.

(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr. Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, or does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr. Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr. Aslam does not have anything for sale.)



Editor: Akhtar M. Faruqui
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