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Shorting stocks


I have a disciplined methodology for investing in stocks ("going long") that has statistically proven to out perform the market over3-5 year periods. This also includes the targeted use of call options.

What I lack is systematic methodology for shorting stocks. I would love to hear from people who have a systematic way of doing this.

I will, of course, share my "long" methodology if anyone is interested.
 

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Login to find out (June 17, 2008 at 8:09pm)
Shorting is essentially haram because you cannot sell something you do not own, only to buy it back later as a cover. But a far more serious breach of Islam is in the next issue: when shorting the current brokerage rules require you to borrow stocks on margin (i.e., interest- based), which is one of the seven big sins.

Going long is the best strategy. Also not to be a harbinger of bad news but derivatives are also haram given their asset-less nature.