Munehisa Homma
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日本語, Munehisa Homma (also known as Sokyu Homma, Sokyu Honma) (1724-1803), was a rice merchant from Sakata, Japan who traded in the Ojima Rice market in Osaka during the Tokugawa Shogunate. He is reputed to have become an honorary Samurai due to his trading success.
Until about 1710, only physical rice was traded but then a futures market emerged where coupons, promising delivery of rice at a future time, began to be issued. From this, a secondary market of coupon trading emerged in which Munehisa flourished. Stories claim that he established a personal network of men about every 6 Km between Sakata and Osaka (a distance of some 600 Km) to communicate market prices. [1]
In 1755, he wrote (黃金泉：三猿金錢錄, San-en Kinsen Hiroku, The fountain of Gold - The Three Monkey Record of Money), the first book on technical analysis. In this, he claims that the psychological aspect of the market is critical to trading success and that traders' emotions have a significant influence on rice prices. He notes that this can be used to position oneself against the market when all are bearish, there is cause for prices to rise[2] (and vice versa).
He describes the rotation of Yang (a bull market), and Yin (a bear market) and claims that within each type of market is an instance of the other type. He appears to have used weather and market volume as well as price in adopting trading positions.
Some sources claim he authored two other books Sakata Senho and Soba Sani No Den
[edit] References
- ^ Candlestick Charting Explained: Timeless Techniques for Trading Stocks and Futures, Gregory L. Morris, McGraw-Hill, 2006, ISBN 007146154X / 9780071461542
- ^ Beyond Candlesticks: New Japanese Charting Techniques Revealed, Steve Nison , Wiley Finance, 1994, ISBN 047100720X, p14.
[edit] See also
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