FINAL PROJECT REPORT ON

INVESTOPEDIA REPORT
ESSENTIAL OF ISLAMIC FINANCE

FACILITATOR: SIR FARHAN MEHBOOB

SUBMITTED BY: ADNAN AHMED

ID: 1478

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 TABLE OF CONTENTS

S. No CONTENTS PAGE

1  Acknowledgement 1

2  Introduction 1

3  Account 2-4

4  Trade History 5

5  Detailed Transaction 6

6  Market Justifications 7

7  Investment Strategy 7-8

8  Mistake 8

9  Learning 9

10  Ending portfolio 9

11  Claim another US $ 100000 10

12  Investor Rules 11

13  Line of Career 11

14  Recommendation 12

15  Conclusions 12

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 ACKNOWLEDGEMENT

I am obliged to Almighty ALLAH for his grace and mercy to successfully complete this project. I
honestly show thankfulness to our facilitator for the Islamic Finance Project module Farhan
Mehboob for supporting and encouraging us to take solid steps in creation the Project. I would like
to express my gratitude with deep intelligence of admiration to my supports and family. It would
have been difficult to go through this project without their aid. They sustained me with their
valuable information and involvement in the effective accomplishment of this Assignment.

INTRODUCTION:

The Investopedia (stock market simulator), I have been given $250,000 for purchasing and buying
the shares for opening account as beginning game. I have invested in different sectors of companies
for buying and selling shares and increasing their knowledge and experience as well.

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 TRAD TARGE TOTAL
E SYMBO QUANTIT T COMMISSI CASH ACCOUNT
DATE TYPE L Y PRICE PRICE ON VALUE VALUE
Stock
: Sell GE (GE
at 0-
8/7/201 Mark Mon $246,979.
5 14:03 et 2001) 90 $25.68 $2,310.75 12
Stock
: Sell
at
8/7/201 Mark $631.4 $12,628.8 $246,979.
5 14:03 et GOOG 20 4 0 12
Stock
: Sell
at FB (FB
Mark 0-
8/7/201 et Mon $143,642. $246,290.
5 9:58 Open 2001) 1506 $95.38 28 75
Stock
: Sell
at
Mark
8/7/201 et $51,375.0 $246,228.
5 9:58 Open VNET 2500 $20.55 0 25
Stock
: Sell
at
8/6/201 Mark $247,590.
5 14:48 et CQH 25 $21.44 $536.00 73
Short
Stock
:
Short
at
8/6/201 Mark $247,570.
5 14:00 et LNG 35 $64.15 $2,245.25 27
Stock
: Sell
at
8/6/201 Mark $247,570.
5 13:57 et JNJ 30 $99.52 $2,985.45 27
Stock
: Sell
at
8/6/201 Mark $118.7 $247,491.
5 13:09 et BTI 20 6 $2,375.20 31
8/6/201 Stock $247,321.
5 13:06 : Sell CHL 50 $64.01 $3,200.50 48

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 at
Mark
et
Stock
: Sell GE (GE
at 0-
8/6/201 Mark Mon $247,321.
5 13:06 et 2001) 25 $25.98 $649.50 48
Stock
: Buy
at
8/5/201 Mark $249,859.
5 15:12 et MSFT 2 $47.84 $95.67 34
Stock
: Buy FB (FB
at 0-
8/5/201 Mark Mon $250,043.
5 15:03 et 2001) 3 $96.58 $289.74 09
Stock
: Buy FB (FB
at 0-
8/5/201 Mark Mon $250,043.
5 14:57 et 2001) 3 $96.58 $289.74 09
Stock
: Buy
at
8/5/201 Mark $100.7 $249,568.
5 14:48 et JNJ 1 1 $100.71 42
Stock
: Buy GE (GE
at 0-
8/5/201 Mark Mon $249,372.
5 14:42 et 2001) 15 $26.12 $391.73 40
Stock
: Buy
at
8/5/201 Mark $249,106.
5 14:24 et CQH 10 $21.78 $217.80 52
Stock
: Buy GE (GE
at 0-
8/5/201 Mark Mon $248,954.
5 14:15 et 2001) 25 $26.08 $651.98 40
Stock
: Buy GE (GE
at 0-
8/5/201 Mark Mon $249,643.
5 14:03 et 2001) 25 $26.09 $652.13 10
8/5/201 Stock GE (GE $249,414.
5 13:33 : Buy 0- 25 $26.05 $651.25 85

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 at Mon
Mark 2001)
et
Stock
: Buy
at
8/5/201 Mark $249,481.
5 13:32 et CQH 25 $21.97 $549.25 40
Stock
: Buy
at
8/4/201 Mark $246,632.
5 13:54 et MSFT 20 $47.56 $951.10 62
Stock
: Buy
at
8/4/201 Mark $246,600.
5 13:51 et CQH 20 $21.66 $433.20 85
Stock
: Buy GE (GE
at 0-
8/3/201 Mark Mon $244,623.
5 14:55 et 2001) 25 $25.72 $643.00 45
Stock
: Buy
at
Mark
8/3/201 et $244,713.
5 9:58 Open WAGE 30 $49.85 $1,495.50 05

DETAILED TRANSACTION REPORT

TRANSACTION #1 COMPANY GENERAL ELECTRIC CO (GE)

BUYING (5/8/2015)

25 shares @ $26.08 plus commission $ 0 = 651.98

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SELLING (6/8/2015)

25Shares @ $25.98 plus commission $ 0 = 649.50

JUSTIFICATION
I bought these stocks because it belongs to industrial sector But Electrical Equipment industry
and American DOW JONES /NYSE INDEX. It was in 6th in top loser and I predicted that it
would improve its performance to come either in top gainer or come out form top loser. But
when I was greedy to sell it in high price and resulting I suffered loss by 0.10 per share (26.08 –
25.98) when I sold it because it was not raising its price.

TRANSACTION #2 COMPANY CHENIERE ENERGY PARTNERS LP HOLDINGS

LLC (CQH)

BUYING (5/8/2015)

25 Shares @ $21.97 plus commission $ 0 = 549.25

SELLING (6/8/2015)

25Shares @ $21.44 plus commission $ 0 = 536.00

JUSTIFICAITON

I bought this stocks because it belonged to American DOW JONES INDEX/NYSE was
increasing and it was energy sector but Oil, Gas & Coal industry compare to previous stock to
maintain portfolio in same sector . It was in 6th in top gainer and I predicted that it would
improve its performance to come in 5th position in top gainer. As a result, it decreased share
prices by -0.53 per share (21.97 – 21.44) so I sold it because it was not raising its price.

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Investment Strategy Which I Pursued

An active investment strategy

I was tracking active investment approach through the complete contract phases .When the market
went up I sold stocks briefly when the marketplace departed miserable I developed characteristic.
Occasionally I had the chance to expansion my clarification by selling the stocks when the value
of specific shares businesses arose. On difference, I also suffered victims when I traded the stocks
at that time the market value of particulars shares of stocks went down immediately.

Investment Strategy that Worked For Me:

 Defensive Investment Strategy.

 Aggressive Investment Strategy.
 Balanced Investment Strategy.

The mistakes which I did:

 I made a huge blunder that I bought many stocks of single sector instead of different
sectors.
 I did not read companies profile such as balance sheet, income statement, business models
etc. I just saw price and buy stock.
 I hardly protected subscribed additional corporations stocks when picking sign of
individual corporations.
 Before selecting stock I didn’t read, investigate and listen news from business channels.
 The market was in bear season when I buy stock.
 As a beginner, I was so irritated and did all the transaction with urgency that’s why I was
building many blunders. Once you work on Investopedia it requires excessive deal of
patience occasionally you need long term approaches.

What remained your ending portfolio assessment…& what can you say/do now?

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Account Value (USD): $249,141.21
I want to say that I could not increase additional my ending portfolio evaluation if I recognized
the instructions, tips, how to exploration and apply method before acquiring stocks. Currently, I
have recognized market condition and I have also learned my error which I recognized during
purchasing and trading stocks. I have a excessive involvement of stock now.

Justify your claim to another US $ 100,000.00?

Now I invest more deeply in different sectors and organization and the American index such as
Dow jones industrial average, S & P 500 index and NASDAQ composite index.
Furthermore, I am crazy about making additional money and I want to influence in rank 1. I use
strategy such as differentiate portfolio and read corporate model and its profile before to invest in.
And I will also investigate PEST analysis and SWOT analysis of a company where I intend to buy
stocks or sell a stock its make me more confident to take a decision in order to buy shares of any
existing company.

INVESTOR SHOULD AVOIDE THESE RULES

In my judgment, there are following instructions that stockholders must accept and follow it as
below before buy or sell any stock.
Rule 1: Bulls, Bears Make Money, Pigs Get Slaughtered

It's essential for all stockholders to identify when to take some off the table.

Rule 2: Don't Buy All Stock at Once

To maximize your profits, stage your buys, effort your instructions and try to receive the superior
price over the time.

Rule 3: Buy Damaged Stocks, Not Damaged Companies

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There are no money back on Wall Street, so do your investigation and focus your trades on
damaged shares rather than companies.

Rule 4: Diversify to Control Risk

Invest in different sectors so you can switch risk if one sector of company share falls then other
sector of company share increase so in that way you can balance your portfolio.

Rule 5: Bad Buys Won't Become Acquire.

Poor firms never get bids, so it's the better fundamentals you require to pay attention on it.

Rule 6: Giving Up on Value Is a Sin

If you don't have tolerance, think about allowing someone who does run your capitals.

Rule 7: Be a TV Critic

Abide that what you listen on television is almost right, but not more than that.

Rule 8: Wait 30 Days after Pre announcements

Pre-announcements indication enduring weakness, wait 30 days to see if everything has become
better previously you pull the trigger to buy More.

Rule 9: There's Always a Bull Market

Do not worry if you are standard value is not raising since might be financial disaster such as
bear market. So wait it until bull market appears.

Discuss why you like to pursue this line of career?

I like this profession since it lies on great deal of economic and market information, I could
become a financial expert, and I can easily understand to know who are the top gainer and loser

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through evaluating market. Besides, there are so many agent corporations who provide fiscal
advisor to their customers and receive commission on it. There are several stations such as
Bloomberg, CNN, and BCC which provide up to date stock information and company’s business
model including CEO consultations. If I continue this career for 4 years I can exposed my
personal consultancy advisor financial advisory firm and I will earn huge amount in a short
while.

How do you endorse one to handle burden condition and nervous moment instigated by
pathetic and impulsive emotional nature investment decisions?

I recommend specific steps to decrease their pressure condition which frequently rises after
moving and impulsive.

First stage is to study what company profile is and business model who are the organization and
how quickly they are fluctuating because this means that company is not reaching his goal. So that
they can stop themselves early to invest in a wrong company and suffer losses when they are
trading these shares into the market.

Second step is that analyze also commission when buying and selling shares because it also impact
on your worth. We develop acquisitive to purchase shares when price is low and pay also
commission but when this price will increase, we try to sell these share and forget about the
commission of trading. Remember these points when you are moving to capitalize in shares.

1. Share price must be not more than two-thirds of fundamental value.

2. Look at these companies through P/E ratios at the lowest 10% of all equity securities.
3. PEG must be less than one.
4. Stock price should be not more than tangible book value.
5. There should be not more debt than equity (i.e. D/E ratio < 1).
6. Current assets should be two times current liabilities.
7. Dividend yield should be at minimum two-thirds of the long-term AAA bond yield.
8. Earnings growth should be at least 7% per annum compounded over the last 10 years.

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Third step is that try to use stock selection it similarly benefit in realizing desire outcome
furthermore we can also save from sufferers by expending stop and boundary when selling the
shares, or one explanation to this is to make money when stocks are decreasing by a procedure
called short selling. One more strategy is to wait on the sidelines until you think that the bear market
is reaching its end, only opening to buy in anticipation of a bull market.

Appendix (A)

Account Value (USD): $246,593.76 Buying Power: $133,705.68 Cash: $124,676.99

Annual Return: 26.87 % s

Stock Portfolio

CURRE
SYMB PURCHA TOTAL TODAY'S TOTAL
DESCRIPTION QTY NT
OL SE PRICE VALUE CHANGE GAIN/LOSS
PRICE
CHESAPEAK
Se - $45.00(- - $91.00(-
CHK E ENERGY 100 $9.09 $8.18 $818.00
ll 5.21 %) 10.01 %)
CORP

EXXON -
-
Se MOBIL 100 $76,770.0 $1,980.0
XOM $82.21 $76.77 $5,436.36(
ll CORPORATI 0 0 0(-2.51
-6.61 %)
ON %)

Se JOHNSON & - $54.60(- - $59.68(-

JNJ 71 $99.86 $99.02 $7,030.49
ll JOHNSON 0.77 %) 0.84 %)

BRITISH -
Se AMERICAN $117.4 $79,859.2 $1,156.0 $254.51(0.
BTI 680 $117.07
ll TOBACCO 4 0 0(-1.43 32 %)
PLC %)

-
Se MICROSOFT - $113.41(-
MSFT 172 $46.70 $46.04 $7,918.88 $221.88(-
ll CORP 1.41 %)
2.73 %)

Se WAG WAGEWORK - $4.20(- - $45.60(-

30 $49.85 $48.33 $1,449.90
ll E S INC 0.29 %) 3.05 %)

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 -
-
$173,846. $3,461.6
Total $5,491.54
47 8(-1.95
(-3.06 %)
%)

Conclusion:

In Investopedia we are learning a lot through buying and selling of shares in stock market and we
do so many mistake in buying and selling furthermore, we conclude in this report stock market is
a different field you must know the current market price and selling price and the strategy of market
and you must study the profile of particular company which companies shares you are buying you
must aware of the company strength before buying any shares.

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