10-27-2004, 09:22 PM
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Dear members,
I agree with some members who have rightly pointed outâ¦.my own view too is that it is refined form of gambling. The stock market is driven by two emotions greed and fear. People are caught up in the boom fever and pay beyond the worth of shares this is the greed that drives bull markets. In bear markets, people get carried away with the ruling pessimism and are eager to sell their investments believing in the worst rumors this is the fear that dominates bear markets.
The aim of investing in stocks and shares is to buy at low and sell at high. Knowing when is however, the problem. Many investors attempt to time the market they try to figure out when the market is going up and buy before it does and then anticipate when it is going to crash and sell before that. This is what is called SPECULATION. apart from above, other practices like short selling and COTs, using inside information make it completely illegal. aND YEAH I too did'nt find any FATWA on this ..wud love to see one
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Idrees
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Dear Idrees,
Nice comments from your side,
I dont disagree with you, but i have some reservations, you mentioned the stock market is driven by Greed and fear, I think, every trading is driven by greed and fear, it is not limited to stock market only.
and It is the aim of every business is to purchase / manufacture at low cost and sell at high price, and it is again not limited to stock market only.
Suppose i m engaged in Rice trading, and I expect that the price of any specific type of rice will increase, I start purchasing that rice with a view to sell it on high price.
Now where does my expectation comes from? obviously it is based on some research, buying pattern of rice consumers etc etc.
Thats what we do in Stock markets, Fundamental Analysis and Technical Analysis, We have some grounds and reasons for our Fundamental Analysis but we dont have any basis for Technical Analysis (Chartist Approach), and by those analyses we purchase securities and make gain on the same.
SMR
Dear members,
I agree with some members who have rightly pointed outâ¦.my own view too is that it is refined form of gambling. The stock market is driven by two emotions greed and fear. People are caught up in the boom fever and pay beyond the worth of shares this is the greed that drives bull markets. In bear markets, people get carried away with the ruling pessimism and are eager to sell their investments believing in the worst rumors this is the fear that dominates bear markets.
The aim of investing in stocks and shares is to buy at low and sell at high. Knowing when is however, the problem. Many investors attempt to time the market they try to figure out when the market is going up and buy before it does and then anticipate when it is going to crash and sell before that. This is what is called SPECULATION. apart from above, other practices like short selling and COTs, using inside information make it completely illegal. aND YEAH I too did'nt find any FATWA on this ..wud love to see one
<font face='Book Antiqua'></font id='Book Antiqua'><font size=5></font id=size5><font color=blue></font id=blue>
Idrees
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Dear Idrees,
Nice comments from your side,
I dont disagree with you, but i have some reservations, you mentioned the stock market is driven by Greed and fear, I think, every trading is driven by greed and fear, it is not limited to stock market only.
and It is the aim of every business is to purchase / manufacture at low cost and sell at high price, and it is again not limited to stock market only.
Suppose i m engaged in Rice trading, and I expect that the price of any specific type of rice will increase, I start purchasing that rice with a view to sell it on high price.
Now where does my expectation comes from? obviously it is based on some research, buying pattern of rice consumers etc etc.
Thats what we do in Stock markets, Fundamental Analysis and Technical Analysis, We have some grounds and reasons for our Fundamental Analysis but we dont have any basis for Technical Analysis (Chartist Approach), and by those analyses we purchase securities and make gain on the same.
SMR
