About the Book
This book is about the life and the tradesman spirit of Honma Munehisa (1717-1803), a wealthy rice merchant from the Edo era of Japan who held the economy of Japan in the sway of his power with his rice trading techniques during his lifetime. Honma Munehisa is best known for the candlestick chart that he has created and which is used throughout the world even today, as well as Sakata’s Five Methods which is an investment tool that he produced based on his candlestick charting.
The candlestick chart is so widely used that almost everyone has heard of it, even if they do not know the particulars, but little is known about Honma Munehisa, who he is and what he is, even though he is the creator of it. There is a lack of understanding about Sakata’s Five Methods, which is the basis of his candlestick chart, as well. This book is intended to fill the gap of understanding about them, while introducing the contents of Honma Munehisa ‘s investment secrets, Honma’s Fountain of Gold.
Never-lose Trading Techniques, Honma’s Fountain of Gold
Honma Munehisa produced Sakata’s Five Methods based on the candlestick charting that he created. Sakata’s Five Methods is about five patterns: Three Mountains, Three Rivers, Three Gaps, Three Soldiers, and Three Methods. These patterns of candlesticks are adopted and called by many different names in today’s stock markets, but their significance and depths can never match the candlestick patterns that were originally developed and explained by Honma Munehisa himself. People can memorize “Three Mountains refers to the shape of three mountains, and this pattern indicates a bearish market,” but just memorizing it doesn’t really help. To get the best out of his insights, you have to understand what is forming the shape of three mountains in the market, and why the trend is expected to turn bearish when the three mountains shape is completed. You also have to understand how market psychology plays a role behind all the market formations.
Honma Munehisa mastered the rules of trading by carefully observing the market participants’ thrill, fear, delusions and anticipation that happens in the market during the day. His Sakata’s Five Methods and The Three Methods are the outcomes of his observation and analysis of the market, and he wrote down what he came to know and understand about the market in his book, Honma’s Fountain of Gold. This book will give readers more than just the investment skills of Honma Munehisa; it will lead readers to come and see the supreme tradesman spirit of an extraordinary man, and presents them with the Right Path of investment.
