About MuslimShareTrader

 

 

Hello and Assalamualiakum. 

​​

 

My name is Abdul Aziz, a Londoner and a qualified high school teacher. This investment blog focuses on Shariah compliant stocks and trading. 

​

I started investing in 2010 (during my PGCE year). I experienced a mixture of success and failure with my investment strategies. If anyone had asked for a recommendation on a stock at that time, my advice would have been simple and clear: avoid the stock markets.

​

So about 10 years on, what's changed? I still believe the stock market isn't for everyone, but it's now a lot easier to be a DIY stock trader now than it was 10 years ago. At that time, the tools available to be a DIY investor were not as good as they are now.

​

I've definitley made a lot of mistakes in the stock market in that time. Ten years on, I still consider myself a learner. This blog shares some of this learning with you.

​

I'm particularly keen to help Muslims gain a better understanding of the Islamic rules surrounding investing.

​

So, when I invest, what do I take into consideration?

​

​​

Investment strategy:

I only invest in ethical companies, as permitted by the shariah. This means I will NEVER invest in the following types of stocks:

​​

1) Gambling
2) Pork/ other non zabiha meat-based businesses                       
3) Pornography
4) Banking/ haram finance
5) Insurance
6) Arms
7) Alcohol/ tobacco/ impermissible drugs

​​

I follow the guidelines set out by the Accounting and Auditing Organization for Islamic Financial Institutions(AAOIFI). This means...

​​

1) Asset:debt ratio:

 

All stocks are below the 33% ratio. I try to find stocks with 0% debt mostly. Where this is not possible, I never select a stock with more than 33% debt.

​

2) Impermissible income:

 

Unfortunately, even if a stock deals with only halal products/ services, it will probably leave its money in the bank and earn some haram income (or generate a small amount of income through other haram means). I aim to ensure no  shareholding exceeds 5% of impermissible income. 

​​

3) Liquid assets:

 

I try to make sure all stocks have a meaningful amount of illiquid assets. Some scholars have said this is not a requirement, but I prefer to err on the side of caution

​

​

​

​