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Stock Market Rules: The Facts and the Fiction : 50 of the Most Widely Held Investment Anioms Explained, Examined and Exposed Paperback – October, 1993
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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.
Top customer reviews
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.
Here are a few of the gems:
Rule #3: Good Companies Buy Their Own Stock
Rule #2: Price Doubling Is Easier At Lower Prices
(just not so)
Rule #9: Look For Insider Trading
(you can too, Martha)
This book is excellent now as it was in the past and will be in the future. The short, quick, clever chapters are easy to read and memorable.
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.