It is really hard to be a day or swing trader when you are Muslim

Working as a day trader or swing trader is almost an impossible career for Muslims. I used to use Zoya and Islamicity apps to find sharia compliance shares. However, after I find a suitable share to work in and to get a quick trade I get disappointed. I buy the share and in a few hours or the next day, I find the share changed from shariah compliant to shariah non-compliant! That means I have to get out of the trade immediately which usually leads to a loss of the trade.
You don’t know how this heart me to see the share goes up right after I get out of the trade early. And there no share that is guaranteed to be halal forever according to the system followed to define the halal and non-halal shares.
Is anyone who faced the same issue found a solution?

With regards to your concern, two things come to mind

A) you should probably understand stock screening better. If stocks are on edge of 33% debt/equity ratio stock price swings will have an impact. If the debt ratios are well within the threshold, then you won’t have an issue during your trading time frame.

B) perhaps you should use some software or make a spreadsheet of halal stocks with their values that you are interested in and keep an eye on a subset of the market.

I won’t comment on day trading itself as I don’t have clarity about it. Swing is probably less contentious as the trade completes before selling.

1 Like

Thank you brother interact and advice
I’m telling my experiment with these apps. You can do this experiment yourself. Download Zoya app and mak a favorite list of 10 shares that are shariah compliant. Come back in a week and look at the same list, you will find some of them changed from shariah comliant to non-shariah compliant. It means you can’t make a short period trade (day or swing) if the share you trade may change suddenly to non-shariah compliant. otherwise we don’t use these screeners!!

Salam brother, I think you can use islamicly desktop version where they provide compliance risk of the stock. Thereby providing the probability of it becoming non complaint in the near future. This way you can guage if it is worthwhile to enter if the risk of compliance is too high

1 Like