Capital Market Transactions Series -- Stock Market Investment Rules

Author: Michelle D. Simo (USA)
Publisher:
Publish Date: 2000-08-01
Features: The suggestion of "cutting losses and preserving gains" is undoubtedly reasonable and will be accepted by both beginners and seasoned market participants. However, the essence of the issue lies in defining what constitutes a "loss." Does it refer to any stock experiencing a price decline? What if the market is also declining at the same time? The Stock Market Investment Rules is a deeply insightful guide to stock market investment. It objectively analyzes and argues 70 investment rules that are widely accepted in the market. The book uses numerous examples and data (including 125 charts) to validate which rules are valuable, which contain both truth and fiction, and which are fundamentally incorrect, even potentially dangerous. Additionally, The Stock Market Investment Rules provides thorough explanations of the core issues within each rule, offering comprehensive guidance for investment behavior under any market conditions. For instance, Chapter 32 ("Using Limit Orders as a Safeguard") provides basic knowledge about "limit orders" and explains how they function in a changing market environment. It reveals the risks some seemingly conservative limit orders may pose, offering techniques to use limit orders to achieve profit targets. Any chapter in The Stock Market Investment Rules can help you avoid mistakes and misjudgments in trading. The book also provides investors with a seemingly all-in-one success formula. For example:
Chapter 6 shows how investors who chase low-priced "hot" stocks while ignoring high-quality, high-priced stocks are often mercilessly treated by the market.
Chapter 38 explains the legendary "Triple Magic Time" from both sides—why some investors remain cautious, while others see each quarterly magic time as the best opportunity to accumulate long-term wealth.
Chapter 51 proves why the average cost method has long been regarded by investors as an effective way to reduce the per-share cost in their portfolios. But does it always apply in every situation? This chapter reveals where investors might misuse the method.
Chapter 57 introduces a common strategy ("buying the dip"), which is a long-term investment behavior that allows investors to repeatedly seize opportunities to significantly enhance their returns. Investors at all levels and traders have been searching for market advantages, and The Stock Market Investment Rules identifies the majority of market maxims tested by time on Wall Street. These maxims still hold value in today's noisy market. Especially the classics among them provide investors with behavior guidelines for any market condition (bull or bear). They act like experienced professional consultants, ensuring that your investment decisions are reasonable and effective.