Stock Market Rules: 50 of the Most Widely Held Investment Axioms Explained, Examined and Exposed 

(5 customer reviews)

$10.49

Author(s)

Product Type

Ebook

Format

PDF

Skill Level

Beginner to Intermediate

Pages

237

Publication Year

2005

Delivery

Instant Download

Description

Stock Market Rules is a critical, principle-driven examination of fifty widely accepted investment axioms that shape how investors think about stocks, risk, and returns. Michael Sheimo approaches the equity markets not by promoting a single strategy, but by dissecting the beliefs and “rules” that investors often accept without question—and testing them against market reality.

Each axiom is carefully explained, evaluated, and placed into context. Rather than treating investment wisdom as universally valid, Sheimo shows when certain rules work, when they fail, and why blind adherence can lead to costly mistakes. Topics such as diversification, market timing, valuation, momentum, and behavioral bias are explored with clarity and balance.

The strength of this book lies in its educational rigor and intellectual honesty. It neither dismisses traditional investing principles nor accepts them uncritically. Instead, it equips readers with a framework for thinking independently—understanding the assumptions behind each rule and recognizing how changing market conditions affect outcomes.

Stock Market Rules is not a trading manual or a stock-picking guide. It is a foundational work designed to improve judgment, discipline, and long-term decision-making in equity markets. By learning how and why investment axioms hold—or break—readers develop a more resilient and realistic approach to investing.

✅ What You’ll Learn:

  • The logic behind common stock market axioms and where they originate.
  • Why some widely held investment rules fail in real markets.
  • How market conditions influence the effectiveness of investing principles.
  • The role of psychology and behavior in shaping investment beliefs.
  • When diversification, valuation, and timing rules truly matter.
  • How to evaluate investment advice critically instead of following it blindly.
  • A framework for building independent, disciplined investment thinking.

💡 Key Benefits:

  • Sharpens critical thinking around stock market “rules.”
  • Reduces reliance on oversimplified or outdated investment beliefs.
  • Encourages disciplined, evidence-aware decision-making.
  • Complements both fundamental and technical investing approaches.
  • Builds a durable mindset for long-term equity market participation.

👤 Who This Book Is For:

  • Investors seeking a deeper understanding of stock market principles.
  • Readers frustrated by conflicting or oversimplified investment advice.
  • Long-term equity investors focused on judgment and discipline.
  • Anyone who wants to think independently about market rules and beliefs.

📚 Table of Contents:

  • Research
  • Analysis
  • Strategy
  • Trading
  • Good Ideas
  • Caution
  • Surprises
Stock Market Rules: 50 of the Most Widely Held Investment Axioms Explained, Examined, and Exposed By Michael D. Sheimo
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5 reviews for Stock Market Rules: 50 of the Most Widely Held Investment Axioms Explained, Examined and Exposed 

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  1. Emberly Murphy (verified owner)

    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.

  2. Luciano Burnett (verified owner)

    Absolutely terrific…Stock Market Rules, (Third Edition), analyzes and explains fifty axioms (the rules) to tell you those which really work, the ones which used to work but don’t anymore, as well as the axioms which are now and always have been terribly wrong. Beyond merely explaining these rules, Michael D. Sheimo uses them to help the reader learn about stock trading. This is extremely helpful to the beginning investor, as well as the investor who’s been at it for a while. Filled with useful information and analysis on how to invest in today’s fast-moving markets, Stock Market Rules, (3rd Edition) reveals the truth of what has been said and is still being said. It provides techniques and ideas that can improve your investing confidence and results.

    Here are a few of the gems:

    Rule #3: Good Companies Buy Their Own Stock

    (not necessarily)

    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.

  3. Aleah Ramsey (verified owner)

    more and more learning about the stocks

  4. Jude Arias (verified owner)

    Very useful information, Michael has explained the market rules in a simple language.

  5. Cameron Corona (verified owner)

    If you are serious about investing you need to read this book. New traders will have their eyes opened to the Market and what professional investors are doing to stay ahead of them. You will buy this book and reread it every year to refresh your mind and remember how things really are.

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