Stock Market Rules, Fourth Edition

  • 4h 45m
  • Michael D. Sheimo
  • McGraw-Hill
  • 2013

50 RULES FOR BEATING THE STREET IN ANY MARKET CONDITIONS INVESTING

The go-to stock-investing guide for more than a decade, Stock Market Rules gives you the knowledge and clarity you need to invest like the wizards of Wall Street.

This proven guide reveals the unwritten rules on which Wall Street investors have long relied to help you draw outsized profits even in volatile markets. Stock Market Rules, Fourth Edition, analyzes 50 maxims to show you which ones work, which ones used to work but don't anymore, and which ones are, and always have been, dangerously wrong. Examples include:

  • RULE #6: It's Always a Bull Market--"There will always be a long-term buying bias to the stock market because if there isn't, the market will cease to exist," Sheimo writes.
  • RULE #22: 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--"There is a repetitive tendency of the stock market to rally between the months of November and December," Sheimo says. "An investor can take advantage of such rallies."

Stock Market Rules provides market-proven techniques and insights that will dramatically improve your investing knowledge, confidence, and results.

About the Author

MICHAEL D. SHEIMO is an internationally recognized expert on the Dow Theory and has been writing investing books for more than 20 years. His books have been published throughout the world, including in India, Malaysia, Korea, China, and Japan.

In this Book

  • Get Information Before You Invest
  • Price Doubling is Easier at Low Prices
  • Good Companies Buy Their Own Stock
  • Short-Term Investor Sentiment Outweighs a Lot of Arithmetic
  • Watch the Bellwethers
  • It's Always a Bull Market
  • Look for Divergence in Trends
  • Buy Good Management; Stick with Good People
  • Look for Insider Trading
  • Know the Best Type of Order
  • Institutions Show Where the Action is Now
  • It Depends on Support and Resistance
  • There is a Bear Market Coming
  • Invest According to Objectives
  • Sell the Losers, and Let the Winners Run
  • Buy Low, Sell High
  • Buy High, Sell Higher
  • Sell High, Buy Low
  • Never Short the Trend
  • Make Winners Win Big
  • Buy on the Rumor; Sell on the News
  • Buy the Stock That Splits
  • "Our Favorite Holding Period is Forever"
  • It's Better to Average Up than Down
  • "Sell in May and Go Away"
  • Buy Stock Cheaper with Dollar Cost Averaging
  • The Perfect Hedge is Short Against the Box
  • Diversification is the Key to Portfolio Management
  • Never Short a Dull Market
  • It's Best to Trade at the Market
  • Never Buy a Stock Because It Has a Low Price
  • Buy the Dips
  • Order Modifications Can Cause Delays
  • Always Take Your Profits Too Soon (Hedge Funds)
  • Follow a Few Stocks Well
  • Greater Risk Means Greater Potential Reward
  • Buy a Good Banking Stock with a Nice Dividend
  • Invest in Mutual Funds, and Don't Worry About It
  • Invest in What You Know Best
  • Give Stop Orders Wiggle Room
  • Indicators Can Meet Overriding Factors
  • Beware the Penny Stock
  • Be Wary of Stock Ideas from a Neighbor
  • Heavily Margined, Heavily Watched
  • Beware the Triple (Quadruple) Witching Hour
  • Avoid Heavy Positions in Thinly Traded Stocks
  • Fraud is Unpredictable
  • There's Always a Santa Claus Rally
  • A Stock Price Splits When It Gets Too High
  • Join the Club
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