Rule of thumb for investing

United States
September 15, 2010 4:31am CST
I don't know much about stock market, and I don't really dare to invest any money in the stock market right now. For my friend, probably is a adventurer, and he did invest some money in the stock. Every time he talk about the current market, he would discuss about the popular product, and he would predict how well it will sell for the future. I don't have a crystal ball to make predictions or anything like that. Rule of thumb for me if I really want to do investing in stock. I would pick a company that has great customer services. Without it, they simply losing the confidence of their customers. Nowadays, the importance of customer services affect every sector of business. So, if they treat customers like garbage, they will more likely to fail. That is what I base on.
2 responses
@krupesh (2608)
• India
15 Sep 10
Stock market is like gambling.But if you study the company before you put the money then you will make profits.As of now its not worth to invest for long term investments as the markets are likely to take heavy dips.But you can always make profits in intraday trading.
• United States
15 Sep 10
As I have told, I don't know much of investing in stock. I might just follow the basic knowledge of mine to know which I should invest. I would start from the customer service sector to consider.
@iowachap (100)
• United States
16 Sep 10
There are so many factors, but good ones that you can see are if the company is meeting/beating or not meeting expectations on their quarterly and yearly earnings reporting. Something that can be a good indicator along with others is earings surprise, so if the folks on wall street were expecting the company to have a 5% increase over last years earnings, and the company does 50% more, that is great, but still not good enough, you want to see good positive growth of at least 25% or higher for 3 quarters straight, preferably with each passing quarter the earnings going higher. Also good news about the company, did they just earn a new big contract, was there a disaster that will make their sales jump in near future etc.. here are some sites I like.. finance - enter email, then put in ticker and it emails you if it thinks the stock is in a upward trend.