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Seven rules for tech investing

The overall stock market may have recovered from the Great Recession, but the tech sector has never fully recovered from the dot-com bust in the early 2000s. Here are seven rules for investing in high-tech companies while avoiding wild speculation:

7. Beware the talent drain

Marcio Jose Sanchez/AP/File
Facebook CEO Mark Zuckerberg gives a presentation at the company's headquarters in Menlo Park, Calif., in June. Mr. Zuckerberg, who made early $2.3 billion last year by exercising stock options, isn't likely to leave his own companies. But other highly valued employees sometimes cash out and leave, leaving high-tech companies that need their expertise.

  • By Janice Fioravante Contributor

If a tech company compensates workers through stock options, warrants, and other company securities and its stock slows down, it faces the risk of losing valued employees, who start looking for new jobs once their options are under water.

Informed decisions can reap stock price appreciation. And don't ignore your own user experience – it might be your first step into delving deeper into technology.

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