Amakella Publishing
What Sounds Most Right about Stocks, Bonds and Mutual Funds May Not Be so Right
By Saghir A. Aslam
Rawalpindi, Pakistan
(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 securely with dignity and fulfill their religious and moral obligations towards charitable activities)
Investing in the Stock Market
Once again in order for any of us to invest in stock market you must understand it and the key point is do not mix day trading investing in the stock market. In day trading some time you may make some money but it is definitely not investing in the stock market. It’s a game that some people play in this day and age with many programs around and some sharpies promoting this kind of money making yet some people do end up moving making some money short term few months later you may come across same people crying that they lost good part of their net worth. Some of these people personally have come to me crying after words we should have taken professional advice.
Investing in the stock market needs and takes lots of time for pimple investors. Business daily is one of the good tool on the second best and the most important one is weekly balance. The real investors sometimes they spend hours analyzing, studying and again come up with a game plan, the real true investment plan, for the long-term some of the information they have received from two of the above sources, and naturally there are other places they can get information and advice.
Ups and Downs are normal
The latest example is the biggest drop in the stock market September 13th, 2022, when the Dow Jones dropped over 1,000 points, to be exact. Dow Jones industrial dropped 1,276 points which turns out to be a nearly 4% drop in just one day; to be exact, it was 3.9% the same day. Standard & Poor's was down 4.3%. Let's take a look at the NASDAQ that was the worst of all, 5.3%. Next morning. I called my stock brokers and asked them what should be our next strategy, what should be our next move? Each one of them has their own opinion. Towards the end each one of them I requested said let's make a list of stocks of different strategies such as make a list of the best dividend-paying stocks that have paid dividends year after year at least over a decade. That will be our list number one. Number two, make another list such as covered calls, you buy a stock that pays good premium on writing calls it's like you're collecting rent, it's called collecting premium for easy understanding. I use the term rent: you're going to rent your stock but there is a condition and there is a price, and this is one strategy that works well. Another strategy that works very well is rolling stocks; in addition to that there are different other strategies so I asked each one of my stock brokers to come up with a list of stocks in each category and then the next day or so we will sit down together and decide where we want to invest, and let me repeat again, invest for the long term, that's the best way and the only way to make money in the stock market.
This article is written in collaboration with Walt Hommerding senior vice president investment of Wells Fargo .
(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, nor 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.)
