Stock Market Rules: The Facts and the Fiction: 50 of the Most Widely Held Investment Axioms Explained, Examined and Exposed [Paperback]

Michael D. Sheimo (Author)

Book Description

Publication Date: October 1993

While stock market axiums are helpful -- easily remembered, serving as guideposts in a chaotic market -- to truly work for the investor, they must be used judiciously. Stock Market Rules: 50 of the Most Widely Held Investment Axioms Explained, Examined and Exposed examines and debunks the myths and mottos of Wall Street using an analytical approach. Written in a concise, easy-to-reference format, this book offers guidelines for virtually every market situation that might arise to aid the novice investor and the seasoned veteran.

Editorial Reviews

From the Back Cover

Everything you need to know to understand and profit from the unwritten rules of Wall Street

Investors have long relied on unofficial rules--"Buy on the rumor, sell on the news," for example--to help with their decision-making. Stock Market Rules, Third Edition, analyzes fifty of these maxims to tell you which really work, which used to work but don't anymore, and which are and always have been dangerously wrong.

Beyond just explaining these rules, however, market veteran Michael Sheimo uses them to help you grasp the finer points of stock trading. Examples include:

• RULE #9: Look for Insider Trading--Sheimo reviews SEC insider trading rules and regulations and recent research studies to conclude, "Insider trading is pretty much meaningless or illegal."
• RULE #2: Buy the Stock That Splits--After explaining the mechanics of a stock split, and reviewing post-split behavior of specific stocks, Sheimo determines that a split alone is no reason to buy a stock.
• RULE #48: There's Always a Santa Claus Rally--Sheimo writes, "There is a repetitive tendency of the stock market to rally between the months of November and December. An investor can take advantage of such rallies . . . "

Revised, updated, and packed with valuable information and analysis on how to profit in today's fast-moving markets, Stock Market Rules, Third Edition reveals the real truth behind what everyone is saying. It will provide you with market-proven techniques and insights that will dramatically improve your investing knowledge, confidence, and results.

--This text refers to an out of print or unavailable edition of this title.

About the Author

Michael D. Sheimo is an internationally recognized stock market expert, with extensive experience as a registered representative and registered options principal. He has written Bond Market Rules, Mutual Fund Rules, and other investment titles.

--This text refers to an out of print or unavailable edition of this title.

Product Details

• Paperback: 218 pages
• Publisher: Probus Professional Pub (October 1993)
• Language: English
• ISBN-10: 1557385254
• ISBN-13: 978-1557385253
• Product Dimensions: 8.9 x 6 x 0.6 inches
• Shipping Weight: 14.4 ounces
• Average Customer Review: 2.8 out of 5 stars  See all reviews (5 customer reviews)
• Amazon Best Sellers Rank: #5,480,804 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

4 of 4 people found the following review helpful:

1.0 out of 5 stars Just OK - shallow content and poor editing, August 23, 2005

By 

Avid Reader (Massachusetts USA) - See all my reviews

This review is from: Stock Market Rules: 50 of the Most Widely Held Investment Axioms Explained, Examined, and Exposed (Paperback)

This book is promising, but ultimately disappointing. A beginner investor will find this book confusing, because it skips around multiple topics without much contextual or background material. An intermediate or advanced investor will find this book trite, because each topic covers familiar ground, and lacks any depth or detail. You will find a few good tidbits here and there, but overall the content is shallow.

The author is a fan of Dow Theory, and the book is littered with references to Dow Theory this and Dow Theory that. The text is overly reliant on the Dow Industrial Average, which in my opinion is an inferior index to use when analyzing the general stock market. Unless you are interested in one of the merely 30 old-line slow-growth industrial companies that comprise the DJIA, you would be better off using the S&P 500 Index or the Nasdaq Composite Index for your market study.

Remarkably, this book appears not to have been edited at all. Despite being in its third edition, the book contains numerous typographical, numerical, and factual errors in both the text and the illustrations. In a casual reading I noted more than 10 serious errors. Table 3-1 shows 11 companies, with their current and historical prices, along with the percentage-change in each price. 7 of the 11 calculated price changes are blatantly wrong! It is hard to trust an investment book that can't calculate percentage-change correctly. Table 3-2 lists a company stock buyback totaling only $250.00. The text refers to "Points A, B, C and D" in Figure 5-3, but no such points appear on the Figure. And so forth all throughout the book.

Paying money for this book is a poor investment. Borrow it from your local library instead.

4.0 out of 5 stars Helpful, June 21, 2006

By 

Q (Q Continuum) - See all my reviews

This review is from: Stock Market Rules: 50 of the Most Widely Held Investment Axioms Explained, Examined, and Exposed (Paperback)

The author's focus is on trading on the basis of trends, market timing, and chart analysis. There's a lot of discussion of technial issues about limit orders, options, and so on. He gives you a lot of very valuable warnings about the "perilous pitfalls" of investing, especially for active traders. I learned a lot about this book, and that's the bottom line. I took this book out from the library. I don't know that I would buy this book, unless I were a "day trader," or at least much more active than I am now.

I read the second edition, not the most current 3rd edition. I did, however, compare the table of contents of both editions, and it looks like the author tried to organize the content better. But it looks like the same basic material.

1.0 out of 5 stars I couldn't get into this book, January 7, 2006

By 

Jenny J.J.I. "A New Yorker" (That Lives in Carolinas) - See all my reviews
(VINE VOICE)   

This review is from: Stock Market Rules: 50 of the Most Widely Held Investment Axioms Explained, Examined, and Exposed (Paperback)

This book was a bit confusing for me probably out of my league for this time. I took this book out of the library and gave it a try, I read some chapters and skim some part but I ended up being lost. Stock Market Rules, Third Edition, is a book, an in-depth, up-to-date examination of the 50 axioms that will most help investors gain the edge in today's technologically supercharged markets. Investors needing authoritative, hands-on guidance will look to this updated edition for its:

-Short sections covering the 50 most immediately useful rules

-Easy-to-read yet analytical approach

-Arrangement by research, strategy, and other major topic areas

Great book for investors who already has a hands on the market.