The Candlestick Trading Bible: Why You Must Read It?
Munehisa Homma was a successful merchant from Japan. It is noteworthy that Munehisa Homma invented one of the most powerful trading systems in history. What do you think about the Candlestick trading bible?
Without exaggeration, Munehisa Homma was one the most successful traders in history. As a reminder, Munehisa Homma was known as the God of markets in his days.
Should you read the Candlestick trading bible? Of course, you should. Why? Let’s find out!
This trading method is suitable for many traders. The Candlestick trading bible is based on Japanese candlestick patterns in conjunction with technical analysis.
It is desirable to gather as much information as possible about the above-mentioned method.
Without exaggeration, Japanese candlesticks are the language of financial markets.
First of all, let’s learn more about the history of candlesticks.
You need to remember that people in Japan started using charts a very long time ago. As a reminder, they started looking at charts in the 17th century. Back then, no one was using charts in the Western world.
Have you heard about rice markets in Japan? Rice played a very important role in the country.
Let’s get back to Munehisa Homma. He was born in the 18th century. A merchant from Sakata changed the world.
What you need to know about him is that Munehisa Homma understood basic supply as well as demand dynamics. Furthermore, he identified the fact that emotion played a part in the setting of a price.
Candlestick trading bible and traders
As stated earlier, the Candlestick trading bible was invented by Munehisa Homma. Without exaggeration, he was a well-respected person. For example, he obtained the status of a Samurai.
Interestingly, the Japanese kept the information about candlesticks for a very long time. People in the Western world learned about candlesticks only in the second half of the 20th century.
As a reminder, in the 1980s, a number of analysts from the West became interested in candlesticks. For example, Michael Fenny, who used to work for Sumitomo at that time, began using candlesticks on a regular basis. Moreover, Fenny helped to popularize candlesticks.
Steve Nison also understood the importance of candlesticks. He wrote a paper about the subject. Also, Nison explained their predictive powers.
Steven Nison even wrote a book about candlesticks. It is a good idea to read his book regarding the above-mentioned topic.
We also need to mention that candlesticks have gained popularity all over the world. It is hard to imagine the modern world without them.
Why are candlesticks so important?
Firstly, they are important to your trading analysis because candlesticks are considered a visual representation of what is going on in the market.
For example, by taking a look at a candlestick, traders get valuable information about the open, high, and low, as well as the close of price, which will give traders an idea regarding the price movement.
Let’s not forget that candlesticks are flexible. Hopefully, candlesticks can be used alone. Moreover, it is possible to use them in combination with technical analysis tools such as moving averages as well as momentum oscillators. Interestingly, candlesticks can be used with methods such as the Elliot wave theory and Dow theory.
It is no secret that human beings would like to earn a lot of money. Importantly, candlestick analysis will help you or any other trader to better understand various aspects of human nature.
Moreover, candlesticks provide more valuable information compared to bar charts. It is worth noting that candlesticks are very powerful among professional traders. Banks and hedge funds also use candlesticks. Traders, banks, as well as hedge funds, trade millions of dollars every day; they have the opportunity to move the market whenever they wish.
Candlesticks and banks
Furthermore, hedge funds, professional traders, and banks have the ability to take your money if you don’t understand the game. Importantly, even if you have the ability to trade a one hundred thousand dollars trading account, you don’t have the ability to move the market; you can’t control what is happening with the market.
So, why should you use candlesticks if you control what is going on? To make a long story short, using candlestick patterns will help you or any other trader to understand what banks, professional traders, and hedge funds are doing, and will show you when to enter, when to leave, etc.
What every trader must know
One of the biggest challenges is that people often risk money they can’t afford to lose. It is not a good idea to risk money that you can’t afford to lose.
To cut a long story short, the amount of money you need to start trading depends on the amount of money you have the afford to lose, simple as that. It is not recommended to borrow the money you won’t be able to return if something goes wrong.
Moreover, emotions play an important role when it comes to trading. So, if you trade and you are afraid of losing, you will fail in this business. It is very important to control emotions. You must control your emotions. Sometimes you lose, and sometimes you win.
It is a great idea to get as much experience as you can. There is no need to panic. Take your time. You need to remember that it takes time and effort to become a successful trader.
If you are interested in the Candlestick trading bible, feel free to gather more information. All you need to do is open Google Search and type Candlestick trading bible or Candlestick trading bible by Munehisa Homma.