Stock Market Rules: 70 of the Most Widely Held Investment Axioms Explained, Examined and Exposed

Front Cover
McGraw Hill Professional, May 21, 1999 - Business & Economics - 313 pages

Wall Street traders live by time-honored rulesaxioms like "Follow a Few Stocks Well", or "Buy On the Rumor and Sell on the News"but only Stock Market Rules tells traders which to trust! A sleeper hit in its previous edition, this instantly accessible book uses an analytical aproach to verify or debunk Wall Street's 70 most followed rules. Investors of all levels, always on the lookout for an edge, will appreciate how it offers guidelines for virtually every market situation. In this updated edition, Stock Market Rules explains 20 all new axioms not previously covered, in a concise and easy-to-reference format, and also reflects the dramatic changes in the market.

From inside the book

Contents

Sell the Losers and Let the Winners Run
1
Make Winners Win Big
9
Losers Demand Careful Strategy
18
It Is Better to Average Up Than to Average Down
21
Good Companies Buy Their Own Stock
26
Price Doubling Is Easy at Low Prices
31
Look for Insider Trading
35
Buy Low Sell High
43
Take a Loss Quickly
175
Beware the Triple Witching Hour
178
Buy on Monday Sell on Friday
182
Never Get Married to the Stock
185
Diversification Is the Key to Portfolio Management
188
Partial Liquidation Might Be the Answer
192
Act Quickly Study at Leisure
194
Records Can Make Money
196

Buy High Sell Higher
48
Buy on the Rumor Sell on the News
54
Sell High Buy Low
58
The Perfect Hedge Is Short against the Box
66
Never Short a Dull Market
68
Never Short the Trend
71
Never Buy a Stock Because It Has a Low Price
75
Beware the Penny Stock
80
Give Stop Orders Wiggle Room
83
Buy the Stock That Splits
89
Institutions Show Where the Action Is Now
95
Avoid Heavy Positions in Thinly Traded Stocks
103
There Are at Least Two Sides to a Story
106
Follow a Few Stocks Well
108
Be Wary of Stock Ideas from a Neighbor
115
Get Information before You Invest Not After
118
Never Fight the Tape
123
Heavy Volume the Price RisesLight Volume the Price Falls
132
Buy on Weakness Sell on Strength
138
It Is Best to Trade At the Market
142
Understand the Types of Orders
145
Order Modifications Might Cause Delay
147
Remember That Others Might Have the Same Idea
151
Use Limit Orders as Insurance
154
Values Can Be Found Bottom Fishing
159
Heavily Margined Heavily Watched
163
Winners Keep on Winning
168
Indicators Can Meet Overriding Factors
171
Fraud Is Unpredictable
198
Use Margin for Leverage Only
202
Avoid Overtrading
204
Buy When Theres Blood in the Streets
208
Look for Divergence in Trends
214
Invest in What You Know Best
219
Buy Stock Cheaper with Dollar Cost Averaging
221
Theres Always a Santa Claus Rally
225
Theres Always a YearEnd Selloff
229
The First Week Determines the Year
234
Its Always a Bull Market
240
Watch the Bellwethers
242
Buy the Dips
250
Buy the Dow Dogs
255
A Trend Remains in Force until It Changes
258
It Depends on Support and Resistance
263
The Stock Market Predicts the Economy
267
There Is a Bear Market Coming
269
There Are More Advances in a Bear Market Than There Are Declines in a Bull Market
273
Use Protective Puts in Volatile Markets
279
The Stock Market Is a Random Walk
283
Use the Rule of 72 to Double
286
A Stock Price Splits When It Gets Too High
289
Join the Club
293
Small Stocks Make the January Effect
297
Invest According to Objectives
301
Index
309
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