How do you exploit microphones?

 
As  I’m relatively new to recording, only ten years or so, I have spent much  time researching  how to improve my recordings and mixing. As recording begins with a microphone and placement, I have sought information on microphones and technique.
 
The internet and Youtube is full of advice on which microphone is the best, and where to place them, but as a member of this forum for some years now, I don’t think I’ve seen anything relating to actual recording technique discussed here. I mean discussion on microphones, and their use in live situations.
 
I know that much of what happens on Youtube is hype and misinformation and has to be treated carefully, but I would be interested to know how experienced members or this forum go about choosing their mics. Do you subscribe to the hype that such and such brand mic is to be used in this situation and not another?  Or, like myself, you have a couple of favourite microphones that seem to work for most thing, and just get on with it.
 
I have the usual compliment of SM58’s and SM57’s that usual work on guitar amps and drums, a couple of small diaphragm condensers and a mid budget large diaphragm condenser that seems to work very well on vocals, and just worry about placement.
 
Of course, I concede there are microphones that excel in a particular situation, but when constrained by budget, how do you make the best of what you have?

Karyn
From the way you describe your mics you can obviously hear the difference between the dynamics, SDC and LDC.  My best advice is spend some time with the mics you have, listen closely to how they capture particular sounds and frequency ranges, in particular listen to how they might be altering the "true" sound.
 
Generalisations...
Dynamics are great for loud, close micing.
SDC are great ambient mics, or distance mics.
LDC are great for close micing quiet sources.
 
You describe your LDC as mid budget...  in which case there's a good chance it has the "presence boost" around the 8khz mark.  This is generally unintended by the manufacturers and is a result of "cheap" capsules used in those mics, but it does sweeten vocals when close miced where the bass boost from proximity effect is often to much.
 
There is really no right or wrong way to use ANY mic.  You use what works at the time which will vary from job to job.  You just need to learn your mics and deploy them as appropriate.

That's some very good advice. 
 
Some great recordings have been made with inexpensive mics and some dreadful recordings have been made with expensive mics.  As someone once said, "It's a poor craftsman who blame his tools".  If you give Eddie Kramer a bag of sm 57's and 58's he'll give you a pro sounding recording.  If you air-drop me into Abbey Road with all the magic equipment they have I'll give you an amateur sounding recording.  In the end your recordings will depend as much on you technique as anything.  With that said, pro equipment can make it a lot easier to get a great sound, but it's not absolutely necessary.  So, do as karyn said and really learn your equipment.  So, for whatever it's worth here is my advice:
1. Pay close attention to were you place your mics.  Listen to how moving them just an inch makes a difference. 
2. WATCH YOUR GAIN STAGING LIKE THE CIA WATCHES KIM JONG-UN!  Poor gain staging will wreck any recording.  
3. Look at the acoustics of your room.  A lot of the time we're cussing the mic when the room we're in is full of weird frequency spikes (actually any room other than a pro recording studio will be).  IMHO fixing your room will pay you far greater dividend than buying more mics. 
 
I hope this is some kind of help for you.

For me, the epiphany was realizing that microphones don't work like ears. Specifically, they "hear" a small portion of the total sound bouncing around the room That's true regardless of how expensive the mic is or its polar pattern.
 
Where the microphone is pointed, how far it is from the source(s) it's picking up, and what else is around it - these are far more important than the microphone itself. Moving the mic just a few inches can radically change what it hears.
 
Of course, technical parameters such as sensitivity, self-noise, frequency response and pickup patterns still matter. Just not nearly as much as microphone placement. The most common frustration is people spending thousands of dollars on high-end microphones, expecting that to make an immediate improvement in their recordings, only to be disappointed. 
 
IMO, you already have the best mic for male vocals, drums and guitar cabinets: the humble SM58/57. I'd suggest adding a versatile large-diaphragm condenser for those applications where a 58 isn't ideal, namely instruments with a lot of high- (or very low-) frequency content and acoustical instruments that interact with the room's acoustics. By versatile, I mean one with multiple polar patterns, and isn't so physically large that you can't always fit it where you want it to go. For example, the venerable AKG C414, a studio standard for decades. 
 
 

I do demos for local musicians record them in their acoustically non-ideal band rooms.
I find my Neumann condensers are too sensitive and pick up too much room echo.
 
My SM7b gets most use because the sensitivity falls off with distance.
With the switches set to flat and low cut I get great results.

FWIW (I haven't read too much here) but I bought a pair of MXL Tempos for like $55 and find that they aren't the highest quality for vocals and instruments like trombones and things, but the sound quality is more than nice enough to use on very bright sources like trumpet (it does an excellent job taming the high end), as well as that they work beautifully as room/ambient mics.
 
And yes, it was said above... get a decent mic, learn to use it. Each mic has idiosyncrasies and comes with its own set of pros and cons... Learn them and how to work with them, and you'll make gold with just 1 or 2 decent mics.