Last Thursday we hosted an Instagram live session with Halal Investor, Moez Mahrez and we discussed, “The Psychology of Investing as a Muslim”. We have summarized the live session into a few points.
What does, “The Psychology of Investing as a Muslim”, even mean? According to Moez Mahrez this means “the mindset and the ability of Muslims to control their emotions when investing in stocks”. Islam teaches us and prepares us to become good investors. Investing in stocks can be very exciting and get your heart rate pumping. Seeing stock prices go up and down can be very addicting. Moez says,”It’s important to be able to manage your emotions when investing and not chase impulses. Investing really shows us how much we as human beings are attached to the dunya and wealth”. Getting involved in the stock market is a great way to help you with your spirituality. You’re forced to put your trust in something bigger than yourself. Teaching yourself to manage your emotions while investing allows you to detach yourself from wins and losses. There’s nothing wrong with enjoying your gains but you need to be able to stay away from getting addicted to putting your money into stocks on impulse buys to see quick cash. Losses should not be overwhelming or affect you too negatively. Moez says, “Use the wealth Allah (swt) gave you responsibly. You must have a logical approach for whatever you do, this includes stocks”.
Here are some key points to investing as a Muslim as explained by Moez Mahrez.
- Be knowledgeable. It’s important to know what you’re investing in. Really take your time to look into the company’s vision, mission and goals.
- Be optimistic. Believe that good will come out of what you’re doing. Be hopeful for the profits and seek better opportunities and any doors that may open for you.
- Be comfortable with what you’re investing in. Does the company stand for a good purpose? Is it shariah compliant?
Stocks are sometimes viewed as just something on a screen when in reality you’re investing in an actual company. Many Muslims don’t understand this and consider investing in stocks haram.
Written By Anan Helwih