Im actually getting into drop shipping. Without making it complicated heres what you should know.
-You make a ebay acc
- you post items and products for 30$
-the custmer buys it
-Then you use the customers money to buy the real item in this asian website called aliexpress.com
-the item will be 20$ on the asain website
-You buy the item and ship it using the customers money and you get 10$
- Depends on the items price.
I'll post since there's no finance/investment section in the forum.
Sometime last year, I've tried day trading, kind of experiment to see how it goes. Ater few days of making a bit money, then I figured out how painful and risky it is to engage. First, you spend the entire day watching the stock, and won't be able to do anything else.
Second, I've seen how risky strategy it is to put your money to it, expecting you'll quickly make a buck.
Third, I've learned to never put your money into penny stocks. Since I was initially investing a little money, I've felt buying the cheaper stocks would let me own more shares in the stock. Well, there's a reason why those stocks are cheaper. In other words, you're dealing with companies whose balance sheets are not in a good shape.
After realizing those points, I came to the conclusion 5hat day trading is just the same as gambling. I've abandoned it all together.
Swing trading was my next goal. I've realized you need financing bacground in order to read the finance statements that companies issue in every quarter. But then I've learned few workarounds: Independent analyst expectations; the industry the stock is in; how the stock was performing in 3, 6, and 12 months; what type of news that surround the stock.; and overall global market trends - Trump being the worst person in 2018 and this year as he started unnecessary trade wars.
Gotta go back to work. Will continue from here.
Any stock trading guru, please add your few cents here. I'm here to learn and pick up few more tricks.
I used to engage in that business I found out it was Haram. The prophet said "Do not sell things which you do not own". Being a cashier is something else, but drop shipping you have no inventory, like space to store your products to sell so you rely on something else like someones warehouse or an app like shopify.
You don't even own the product to begin with. Very much you say you have something which you don't and you use someones money and go to AliExpress and buy it from there and ship it.
How is it haram when people in US, Canada, EU, Australia, in East Africa and Middle East put their money in Hormuud, Golis, and other businesses, and sell them immediately if they want to? And how is putting your money into IT, energy, or pharmaceutical companies different than the companies back home?
If people are going to run with 1 hadith, try to interpret it literally, and issue fatwa based on that, that is dangerous in my view. If there is ca consensus issued by mainstream Islamic scholars in the 4 schools of thought in Sunni Islam, I would consider it. However, any fatwa issued by the literalists is definitely something that I'm going to ignore.
I'm sick of their rigid interpretation of Islam when they have no clue about Islamic jurisprudence.
p.s., if one is doing it as if it is gambling kind of a thing, I can understand it; however, the whole idea of an investment is to make a profit. And if one is trying to make a quick buck while minimizing risk, I see nothing wrong with it.