STOCK MARKET RULES
The Facts and the Fiction
Probus Publishing Co.
118 N. Clinton St., Suite 305
Chicago, IL 60606
(312) 346-7985, (800) 969-8878
Author: Michael D. Sheimo
1991, 218 pages
The claim: "50 of the Most Widely Held Investment Axioms Explained and Exposed." The reality: "50 of
the Most Widely Held Investment Axioms Elaborated and Expanded."
If you bought this book, you might expect a good quantitative debunking, or possibly the sage examples
of experience relating to each rule. Given that most stock market rules are slippery to define and test,
forget that. Sheimo clearly speaks from experience but it won't help the novice much, because most of the
advice he gives is in the vein of "this works in some situations but not in other situations." The novice is
generally at pains to figure out what the situation is, let alone apply a hoary rule to it.
Now, there is good advice here (for example, "Thinly traded stocks might be worth a light speculative
position held for long-term investment. But they should probably not make up a significant position for
short-term trading"), and some genuinely prudent direction does pop up ("Sell at the first scent of fraud").
At the very least, virtually every axiom is listed and the discussion gets a lot of subjects at least on the
table, if not resolved. On cutting losses and letting profits run: "In some situations the investor should
prepare to sell but in other circumstances it is time for a closer look before reaching the sell decision."