Stock Market Investing Tip

One overlooked tip to stock market investing is knowing as much as you can about the company you are investing in. I know that seems painfully easy, almost common sense, but it is amazing how many people don't research the companies they are investing in. They check the stock reports on Morning Star or make the mistake of trusting the investing to a broker. But information, being educated about your investments is the most basic, fundamental tip for becoming a successful investor. This means reading everything you can about the company, the industry, competitors, even information about the board of directors. How do you get company information easily without having to spend hours digging? I set up Google alerts with the name of the company and then individual Google keyword alerts for each of their main competitors and sometimes one or two keywords and phrases for the general industry. All articles about the company are e-mailed to my inbox every day. I briefly scan for information that could possibly lead to a change in the stock price. Quarterly revenues, new markets the company is considering entering, buy-out rumors, if said company is considering selling off a business unit, or buying a piece of another business and general industry news. Is the industry growing? What is the demand level, etc? A simple news scan can save or make you a bundle of money.

Let me give you an example. Last year I became interested in an internet advertising firm. My interest was first developed when I used their services and was very pleased with the results. I decided to do some digging, so I set up Google news alerts and after a few months I discovered their business plan was to acquire firms as a plan of growth. I didn't buy stock immediately after the first few acquisitions, but when I read they were acquiring one of the biggest affiliate marketing firms in the world I decided the time to strike was then. Of course I used Google to do my research on the firm they were to acquire. I saw that customers were happy; they were the biggest in their market. They were trend-setting, they had grown fast and I knew just from simple, basic research they were a solid firm.

So I purchased the stock and within six months it doubled. I attribute my success to basic research. Knowing something about the company I was considering.

By Sarah Celeste

Sarah Celeste has discovered an amazing, automated stock market robot that helps you make fool-proof stock market investing decisions. Read more about this groundbreaking software developed by two programming geniuses at her blog: http://stockmarketinvestingtip.blogspot.com/

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