I just read the book called ‘The Secret Code of Japanese Candlestick‘. I like to share as it will help me to memorize content that I’ve read and this is some of the point.
The Sokyu Honma’s method and it’s five rules :-
1. Without being greedy, look at past market movements and think about the time/price ratio.
2. Try to buy a bottom and sell a top.
3. Increase your position after a rise of 100 bags from the bottom or a decline of 100 bags from the top.
4. If your forecast is incorrect, try to recognize your mistake as soon as possible. Then, close your position and stay out of the market for 40 to 50 days.
5. Close 70 to 80 % of your positions, if they are profitable, closing what is left after a top or a bottom is reached.1. Without being greedy, look at past market movements and think about the time/price ratio.
The part of Sokyu Honma’s method which consists of the subjective five rules, will have taught us:
1. How to manage time and price.
2. How to manage buying and selling points.
3. How to decide what size of position to take.
4. How to manage losses.
5. How to manage wins.
There’s many thing that I couldn’t elaborate to share with you. If you want to learn about trading stock, I’ll recommend you to buy this book
The book is only $4.49 at Amazon.com but it consist many thing about candlestick. If you are a trader, then you must know about the term such as Moburozu, Finobachi and others. How this term and method being famous? That’s the reason you must get and read this book….