So, I couldn’t resist making a handsome profit (trading my own funds) today trading Diageo. What do you guys thinks, would you stick to Islamic guidelines or not? We break those guidelines when when take loans and buy insurance. Your thoughts.
Re: Ethics of buying/selling alcohol companies
Well not going for a religious debate, but I personally wouldnt trade for a alcohol company
Re: Ethics of buying/selling alcohol companies
I would question the barkat of any profit made from vice companies such as alcohol and tobacco. And yes, I know, unless someone invests in ethical or better yet Islamic funds, then arguably they and their investments are part of the same capitalistic system which undoubtedly has a nexus with the vice companies. But I think it comes to intent. And direct or knowing investment in alcohol or military or tobacco or gambling companies would be a no for me.
Re: Ethics of buying/selling alcohol companies
^ In other words, that would exclude a vast majority of stock mutual funds. And most definitely the Total mkt index fund or snp500 index fund if in the us. Or similar funds elsewhere.
Re: Ethics of buying/selling alcohol companies
badabing, how does one make huge profit by trading a stock? Did it move significantly up or down in a day?
Re: Ethics of buying/selling alcohol companies
badabing, how does one make huge profit by trading a stock? Did it move significantly up or down in a day?
Take some of what I did today, I traded both client funds and my personal funds - outside of my primary job of providing credit to businesses. So, after the whole Tunisia thing, I knew travel companies would fall - so I shorted travel stocks. There were rumors flying around on Sunday that 3G (run partly by Brazil's richest man) was looking at buying Diageo - primarily an alcohol company - I made about 7.75% over the course of several hours. Greece has suspended trading for a week or so - it was commonsense that European banks would be hit hard on the downside, I shorted these. All were hedged by buying up US Treasuries and German Bunds (which rose as investors flocked to them as safe havens). Add in the power of leverage and you can make several months bonus in the space of 4-5 hours.
Re: Ethics of buying/selling alcohol companies
some people don't buy insurance or take out mortgages because of that exact reason you know. Just because you haven't seen many doesn't mean they are not out there. If halal earning doesn't matter to you, then I don't see what the problem is. It is haram earning from the trade of haram things, you not being able to resist it is a weakness in faith or perhaps a lack of knowledge in Islam.
I personally would rather take zakat than profit from haram business.
Re: Ethics of buying/selling alcohol companies
Glad to note you did well, badabing. Continued successs.
Thanks for the explanation. Makes sense. But wouldn't the drop or rise in prices have been reflected before market opened? Or was there still an opportunity AFTER THE market open to make money?
(Short term trading not my cup of tea - so won't be using this approach).
Re: Ethics of buying/selling alcohol companies
Glad to note you did well, badabing. Continued successs.
Thanks for the explanation. Makes sense. But wouldn't the drop or rise in prices have been reflected before market opened? Or was there still an opportunity AFTER THE market open to make money?
(Short term trading not my cup of tea - so won't be using this approach).
You can place trades before the opening bell as well once trading commences. Opportunities arise through the day: news on the wire, rumors, twitter feeds, data mining feeds, looking for specific trading patterns whether it be equities, fx, options or commodities.
I tend to have a greater appetite for risk then some investors. I purchased about 1.7 million shares in RBS - a UK based bank that had to be bailed out by the UK taxpayer during the credit crunch. The UK government will soon be selling its shares in RBS - so will I. On the downside, I've also got it wrong - I've made bad investments on the AIM here in the UK and lost a load of cash also.
To me it's the best computer game in the world, I could do it all day everyday. This is the primary reason why I never went down the traditional asian route of becoming a doctor - I met all the grade requirements, had the extra curriculars etc. My father wanted me to go down this route, but I knew it wasn't for me, I mean who wants to study for 6 years? I was making more money than most managers in businesses by the age of 20, so I knew this was the route for me, to do it for a living full time in an institution so to speak. Anyway, my dad is still under the impression that I never got accepted for med school, what he doesn't know is that I never applied!
Re: Ethics of buying/selling alcohol companies
Interesting. Hope you make bada bada rupiah