The mindset you must know to make money in stocks
How to capture the timing of buying and selling
Other secrets to staying ahead of others

This book covers how to read and utilize charts and technical indicators, with the goal of "start studying and make money through stock investment!"
This book introduces knowledge that will serve as the "basic foundation" for future stock investment. Since studying for its own sake is meaningless, I've omitted difficult and hard-to-understand content and included only the knowledge that can be applied when actually investing.
We've carefully crafted this book with charts and illustrations so that even beginners can easily understand the practical knowledge.
I would be happy if I could clearly understand the contents of the book and realize the happiness of making money through stock investment.

How to read charts, how to read technical indicators, and how to use them in practice
These days, with the proliferation of smartphones and the development of online securities services, stock investment is becoming increasingly familiar.
It is becoming a reality for housewives and office workers to earn pocket money by trading stocks in their spare time.

The ultra-low interest rates on bank deposits may also be an opportunity to start investing in stocks.
However, it is also true that many people lose a lot of money after starting to invest in stocks without thinking deeply, saying, "It seems like it will be more profitable than bank deposits" or "It seems like I'll make money."
That is understandable, as the stock market is structured so that money flows from the weak to the strong.
If you jump into the stock market without studying or planning, the results are obvious.
That's why I strongly recommend that you study before investing.
Investing money without learning at least the basics is like gambling.
We must turn gambling into a legitimate source of income through study.

The knowledge you learn from this book can be said to be the minimum knowledge required to make money.
However, understanding it in your head and applying it in practice are two different things.
After reading this book, you need to make an effort to convert your knowledge into practical skills, such as by using the securities firm's chart tools.
If you do that, you will definitely be able to enjoy investing in stocks.
The joy of profit will also follow.

Securities firms can be broadly divided into two types: face-to-face and online.
Face-to-face securities are suitable for those who manage large amounts of assets while receiving advice from salespeople.
It can be said to be more suitable for people who already have assets.
Meanwhile, online securities are characterized by low fees.
Since the goal is shareholder benefits, if you have already decided on the stocks you want to buy, or if you are looking for short-term profits, as introduced in this book…
--- p.25

This book will focus on the three analyses mentioned above.
On the first and second days, you will learn about chart analysis, and on the third day, you will learn about analysis using technical indicators and trading volume.
The second half is practical content that uses what you learned in the first half to look at actual charts and read trading timing.
First, on the 4th day, we will learn how to place a buy or sell order. On the 5th day, we will learn using real-life examples of 'buy signals', and on the 6th day, we will learn using real-life examples of 'sell signals'.
--- p.35

The ocean candlestick is the opposite of the large candlestick, with the opening price = low and the closing price = high.
It shows that the buying power is dominant.
This pattern shows that the stock price is trending upwards, so it would be a good idea to consider buying.
Also, when you find a candle of this type, check the trading volume at the same time.
If the trading volume is higher than usual, it can be considered a strong upward movement.
--- p.51

There are two basic ways to use moving averages.
· Use golden crosses and dead crosses to determine the timing of buying and selling.
· Look at the direction of the moving average line to determine the general trend.
While this method of use is easy to understand, it does have some weaknesses, as follows:
· The signal appears late.
· It is easy to encounter false signals.
Since the chart tools of almost all securities firms allow you to change the number of days for calculating moving averages, consider using a 10-day moving average instead of a 5-day moving average to match the stock's movements, or utilize technical indicators other than moving averages in conjunction with the chart tools.
--- p.73

We strongly recommend that you print the chart and create a chart file.
It is much more efficient to print out the charts for later review or when studying them again.
For example, if you think, 'This chart pattern is a buying opportunity,' print out that chart.
You can check the stock price later to see if your prediction was correct, and if it was a useful timing as predicted, it is easy to notice when you look at a similar chart later and say, "Oh, it looks exactly like the chart I printed out."
You can also draw trend lines or make notes on the chart.
Creating chart files is a very effective way to turn experience into practical skills.
Another thing that needs to be created at the same time as the chart file is the trade notes.
It is recommended that you utilize it not only during the actual trading phase, but also during the study phase before that.
In your trade notes, write down everything you discovered.
--- p.102

The moving average line we learned on Day 1 is a type of technical indicator.
Now let's look at other technical indicators.
Technical indicators are diverse and profound, so there is no need to learn them all perfectly.
And let's aim to properly utilize some basic indicators.
Even professional traders surprisingly often only use basic technical indicators.
--- p.103

First, we will learn about the 'Ichimoku Kinko Hyo' and 'MACD', which belong to the 'trend series technical indicators', just like the 'moving average' that appeared on the first day.
As explained above, using trend indicators together can provide greater accuracy than tracking trends by looking at candlestick charts alone.
Next, we will learn about the 'Oscillator Series Technical Indicators'.
This is an indicator that determines overbuying and overselling.
Specifically, we will study 'RSI' and 'discrepancy'.
Finally, we will also explain the volume series technical indicators.
--- p.104

We've said many times that it's important to ride the trend and profit when you're a beginner, but there are also things to be careful of when buying stocks in the middle of an uptrend.
The question is, 'Has the stock price risen to a level that is considered overheated buying?'
Not many people want to buy stocks at prices above what appears to be overheating.
In other words, even in an upward trend, if the stock price rises to the level of overheated buying, it may be difficult to think that the stock price will rise any further.
The oscillator technical indicator is what determines this buying overheating and selling overheating.
--- p.116

It is common for sell orders to line up when a stock price shows signs of rising.
There are sell orders to confirm profits, and there are also cases where people who want to sell at a slightly higher price, even though it is a loss cut, place sell orders one after another when the stock price has risen slightly.
At this time, if there are only a lot of sell orders and there are not enough buy orders to handle the sell orders, the trading volume does not increase.
Conversely, if buy orders are placed one after another to satisfy sell orders, sell orders will decrease rapidly.
However, if the number of sell orders does not decrease, the number of investors who think, "I want to buy even if it's a little expensive," will increase, causing the stock price to rise.
A sell order is placed, and a larger buy order is placed to satisfy the sell order.
When orders are placed in a line like this and processed, the trading volume increases.
Ultimately, the number of sell orders decreases, causing the stock price to rise.
You can roughly visualize the trend of stock prices rising after trading volume increases.

--- p.128