Module 9_Risk Management & Trading Psychology.pdf
3.6 MB
Module 9_Risk Management & Trading Psychology.pdf
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π§βπ»Important Update:π£
Assalamualaikum,
Enhancement to the Shariah screening criteria
11th Oct 2023
Being a global leader for Shariah equity screening methodology development and execution, we at Islamicly constantly endeavour to keep you updated with the latest scholarly thought in this space.
In line with our vision, we have always been working with our Shariah board of scholars, who are globally considered pioneers in the Shariah equity methodology space, to bring to you the latest scholarly thought.
The Islamicly Shariah board has made certain enhancements to the Shariah equity screening criteria.
Change 1:
Tolerance to Impure incomes If a company derives less than 5% of its total business income (including all kinds of interest income) from such non-permissible sectors, it may be tolerated and the company will still be deemed to have passed the Level One Core Business SectorβBased Screens.
Previous:
If a company derives less than 5% of its total business income (excluding non-operating interest income) from such non β non-permissible sectors, it may be tolerated and the company will still be deemed to have passed the Level One Core Business SectorβBased Screens.
Explanation:
In line with emerging thought across Shariah boards, the treatment of non operating interest income has now been enhanced. The new methodology takes into account all kinds of interest income irrespective of whether it is from operating or non operating sources. Hence all kinds of interest income is considered for the 5% threshold of impure business income of the company. In effect, the business sector screening criteria has become more strict which is in conformity with AAOIFI standards as well.
Change 2:
Removal of cash and accounts receivables ratio
Previous:
Cash Compliance This compliance is measured as: (Cash + Interest Bearing Securities) / Market value of Equity (36 month average) <33% Accounts Receivables Compliance This compliance is measured as: Accounts Receivables / Market value of Equity (36-month average) <49%
Explanation:
The initial thought of the Shariah board for imposing a cash ratio threshold was to avoid the imposition of rules of sarf on the trading of the company's stock as well as to avoid such companies who had high levels of unproductive cash. In simple words, if a company's cash balances were to be in excess of a third of its market value, the rules of sarf would apply on the trading of its shares i.e. they could only be traded at par value.
With evolving thought that the company is a going concern and cash balances are usually invested in some form of productive function, there has been emerging consensus among leading Shariah boards, that this cash ratio thresholds are no longer relevant. This is again in line with the latest AAOIFI standards in place as well as confirms to the decisions of Shariah boards of leading Islamic banks in the world.
Please refer to the revised screening criteria document for more details available at https://islamicly.com/home/screeningprocess
With Islamicly, you can always bank on us for thought leadership in this space!
β οΈNo more discussion, Members can directly ask queries to islamicly if they have any questions β οΈ
Assalamualaikum,
Enhancement to the Shariah screening criteria
11th Oct 2023
Being a global leader for Shariah equity screening methodology development and execution, we at Islamicly constantly endeavour to keep you updated with the latest scholarly thought in this space.
In line with our vision, we have always been working with our Shariah board of scholars, who are globally considered pioneers in the Shariah equity methodology space, to bring to you the latest scholarly thought.
The Islamicly Shariah board has made certain enhancements to the Shariah equity screening criteria.
Change 1:
Tolerance to Impure incomes If a company derives less than 5% of its total business income (including all kinds of interest income) from such non-permissible sectors, it may be tolerated and the company will still be deemed to have passed the Level One Core Business SectorβBased Screens.
Previous:
If a company derives less than 5% of its total business income (excluding non-operating interest income) from such non β non-permissible sectors, it may be tolerated and the company will still be deemed to have passed the Level One Core Business SectorβBased Screens.
Explanation:
In line with emerging thought across Shariah boards, the treatment of non operating interest income has now been enhanced. The new methodology takes into account all kinds of interest income irrespective of whether it is from operating or non operating sources. Hence all kinds of interest income is considered for the 5% threshold of impure business income of the company. In effect, the business sector screening criteria has become more strict which is in conformity with AAOIFI standards as well.
Change 2:
Removal of cash and accounts receivables ratio
Previous:
Cash Compliance This compliance is measured as: (Cash + Interest Bearing Securities) / Market value of Equity (36 month average) <33% Accounts Receivables Compliance This compliance is measured as: Accounts Receivables / Market value of Equity (36-month average) <49%
Explanation:
The initial thought of the Shariah board for imposing a cash ratio threshold was to avoid the imposition of rules of sarf on the trading of the company's stock as well as to avoid such companies who had high levels of unproductive cash. In simple words, if a company's cash balances were to be in excess of a third of its market value, the rules of sarf would apply on the trading of its shares i.e. they could only be traded at par value.
With evolving thought that the company is a going concern and cash balances are usually invested in some form of productive function, there has been emerging consensus among leading Shariah boards, that this cash ratio thresholds are no longer relevant. This is again in line with the latest AAOIFI standards in place as well as confirms to the decisions of Shariah boards of leading Islamic banks in the world.
Please refer to the revised screening criteria document for more details available at https://islamicly.com/home/screeningprocess
With Islamicly, you can always bank on us for thought leadership in this space!
β οΈNo more discussion, Members can directly ask queries to islamicly if they have any questions β οΈ
Islamicly
Halal Stocks Finder and Screener | Shariah Advisor for your Halal Investments- Islamicly
Islamicly provides the Shariah compliance information of 30,000+ Screened Stocks globally for your Halal Investments and enables Muslim stock traders to check Halal Status of a Stock.
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Isse khud bhi bachna hai. Aur doosro koo bhi bachana hai
https://youtu.be/iBG_Bl16ADM?si=5Ttg1KlKugfhSMe4
https://youtu.be/iBG_Bl16ADM?si=5Ttg1KlKugfhSMe4
YouTube
This βΉ70,000 Crore Illegal Stock Market is Bigger than NSE
There is the dark side to everything and the stock market is not an exception. It has a dark side too. That is called Dabba trading. Which is carried out illegally. Totally outside of the purview of regulatory bodies like SEBI, the Government and exchanges.β¦
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IMPORTANT INFORMATION FOR IPO INVESTORS
Much awaited IPO of Tata Technologies is set to open post Diwali.
Shareholder's Quota is there (Parent Company Tata Motors) and it will further increase allotment chances.
Buzz is there in grey market and all brokers are active for this IPO.
GMP started and its around 175.
Much awaited IPO of Tata Technologies is set to open post Diwali.
Shareholder's Quota is there (Parent Company Tata Motors) and it will further increase allotment chances.
Buzz is there in grey market and all brokers are active for this IPO.
GMP started and its around 175.
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"My Profit-Booking Approach
I've shifted my mindset when it comes to booking profits in stocks. Instead of worrying that I might not get the same stock again, I now think: 'I can book this one and there will be many more opportunities.'
This change in perspective has helped me overcome regret and the fear of missing out (FOMO). It's a game-changer!"
#Trading #Psychology #ProfitBooking
I've shifted my mindset when it comes to booking profits in stocks. Instead of worrying that I might not get the same stock again, I now think: 'I can book this one and there will be many more opportunities.'
This change in perspective has helped me overcome regret and the fear of missing out (FOMO). It's a game-changer!"
#Trading #Psychology #ProfitBooking
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Forwarded from Riz A
Guys 15-mins time I am available.
Ask your stocks. fataaft...
Time starts now.........
Ask your stocks. fataaft...
Time starts now.........
Assalamualaikum..
Reminderπ£
Bahut saare members k demands k wajah se Quran sikhne ki class ka waqt aaj Mangal se Isha k baad rahega Inshaallah
Mangal - Budh - Jumerat - Juma
9:30pm to 10:30 PM
Reminderπ£
Bahut saare members k demands k wajah se Quran sikhne ki class ka waqt aaj Mangal se Isha k baad rahega Inshaallah
Mangal - Budh - Jumerat - Juma
9:30pm to 10:30 PM
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Assalamualaykum Everyone
SCSM Updates from 1 oct to 18 oct 2023
Almost 90+% Accuracy
Some stocks double
Some 50%
You can Cross Check in Our SCSM channel..
Alhamdolillah For Everything..
Special Thanks to bhai @Mohsin2917
@Rizwa9_A bhai @sjd063 bhai @skyjaved bhai @AHTESHAM_ANIS bhai ..
And Shariah Team β€οΈβΊοΈβΊοΈ
" Shariah Hai To Safe Hai "
SCSM Updates from 1 oct to 18 oct 2023
Almost 90+% Accuracy
Some stocks double
Some 50%
You can Cross Check in Our SCSM channel..
Alhamdolillah For Everything..
Special Thanks to bhai @Mohsin2917
@Rizwa9_A bhai @sjd063 bhai @skyjaved bhai @AHTESHAM_ANIS bhai ..
And Shariah Team β€οΈβΊοΈβΊοΈ
" Shariah Hai To Safe Hai "
β€19π₯18π9π―5
Forwarded from Mohammed Talib Official
ΰ€ΰ₯ΰ€ΰ€Ύΰ€¨ ΰ€ΰ₯ ΰ€¬ΰ€Ύΰ€€ :- 52
About RSI
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. Signals can be generated by looking for divergences and failure swings. RSI can also be used to identify the general trend.
RSI is considered overbought when above 70 and oversold when below 30. These traditional levels can also be adjusted if necessary to better fit the security. For example, if a security is repeatedly reaching the overbought level of 70 you may want to adjust this level to 80. During strong trends, the RSI may remain in overbought or oversold for extended periods.
Advantages of RSI
1 - effective way to predict potential trends
2 β RSI can give very good signal when to enter and when to close position
Disadvantages of RSI
1 - true reversal signals are rare and can be difficult to separate from false alarms.
2- RSI can stay long time in overbought or oversold zone .
3 - when a market features a strong trend, the RSI loses its usefulness
There is no magic indicator that can predict with certainty when to enter or when to exit a trade. If there was, everyone would use it, and there would be no dynamic market as everyone would buy, and everyone would sell at the same time.
About RSI
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. Signals can be generated by looking for divergences and failure swings. RSI can also be used to identify the general trend.
RSI is considered overbought when above 70 and oversold when below 30. These traditional levels can also be adjusted if necessary to better fit the security. For example, if a security is repeatedly reaching the overbought level of 70 you may want to adjust this level to 80. During strong trends, the RSI may remain in overbought or oversold for extended periods.
Advantages of RSI
1 - effective way to predict potential trends
2 β RSI can give very good signal when to enter and when to close position
Disadvantages of RSI
1 - true reversal signals are rare and can be difficult to separate from false alarms.
2- RSI can stay long time in overbought or oversold zone .
3 - when a market features a strong trend, the RSI loses its usefulness
There is no magic indicator that can predict with certainty when to enter or when to exit a trade. If there was, everyone would use it, and there would be no dynamic market as everyone would buy, and everyone would sell at the same time.
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JUST IN | Aditya Birla Fashion to buy 51% stake in Styleverse Lifestyle for βΉ155 cr: Agencies
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