is the automotive industry good to invest in?

Respectively, no and yes. Let the “big three” fail and be replaced by new American auto manufacturing companies. Ford and Honda has a good reputation in Auto industry not bad for your investment but lots of bad news about Toyota and their auto recalls.

An investment strategy is a set of rules, behaviors or procedures, designed to guide an investor's selection of an investment portfolio. Usually the strategy will be designed around the investor's risk-return tradeoff: some investors will prefer to maximize expected returns by investing in risky assets, others will prefer to minimize risk, but most will select a strategy somewhere in between. Passive strategies are often used to minimize transaction costs, and active strategies such as market timing are an attempt to maximize returns.

One of the better known investment strategies is buy and hold. Buy and hold is a long term investment strategy, based on the concept that in the long run equity markets give a good rate of return despite periods of volatility or decline. A purely passive variant of this strategy is indexing where an investor buys a small proportion of all the shares in a market index such as the S&P 500, or more likely, in a mutual fund called an index fund or an exchange-traded fund (ETF).

Investing only in automotives, specifically only one automotive company, right now may not be the best option. GM might see some initial fanfare with its coming IPO, but Japanese carmakes are being quashed under the depreciating dollar while American automakers are drowning under outstanding debt, labor costs, and a more humble American consumer (none of these seems to be about to change in the short term). If you are still serious about automotives, you might consider an index fund which tracks the entire industry to reduce your liability (http://www.investorguide.com/mutual-fund.php?symbo...

I would do some more study before you commit to any one individual stock. I might recommend you find a book such as The Intelligent Investor or a book by John C. Bogle of the Vanguard Group. Good luck!

Unless you are trained in finance and have the financial reports in hand its hard to say. I always heard buy low and sell high. When something is low and I think it will go up I buy it. The question is best answered by you. Do you think it will go up? Look for something know a lot about and see what you think will be a hit. That being said, I think automotive will be good because its low now and has to go up eventually. I recently bought into a real estate holding stock. Thats another thing that can only go up. Look for things that are near the 52 week low and check for trends on the 5 year graph. The most important thing is dont invest more than you can afford to lose. The stock market is similar to the craps table so invest responsibly.