What can an average individual do to make money on stock?
Hanwha Investment & Securities Managing Director Kim Il-gu, who has worked as a stock bond fund manager and analyst, appeared on the Korea Economic Daily YouTube channel on the 2nd, insisting that “reduce too much interest in stocks.” This advice was wary about the situation in which interest in stock investment rose to a peak as the KOSPI broke the 2800 line.
He advised to make another pocket as a specific action plan. It means separating a long-term investment account, which regularly invests in a portion of the salary, and a stock account that trades daily.
Managing Director Kim said, “Investment in stocks also needs training in order to attack, as well as sending scouts in advance.
Appearing in the corner and interviewing / Captured screen of Korea Economic Daily YouTube
Hanwha Investment & Securities Executive Vice President Kim Il-gu appeared at the Korea Economic Daily YouTube section and interviewed / Korea Economic Daily YouTube screenshot
“After seeing a big loss in stock, you can’t move because of fear,” he said. Quoting the words of investment giant Warren Buffett, he repeatedly emphasized that the most important principle of stocks is not to lose money, and the second is not to forget the first principle.
He cited’a game in which 50% profit is made when the coin comes out and 40% is lost when the coin comes out’ as an example. Will you really make money by repeating this game? Managing Director Kim explained, “Minus 40% is a too big loss, so more than half of the cases will be filled with cans.” He emphasized, “It is a much more advantageous investment to earn 10% and break 5% than to earn 50% and lose 40%.”
Managing Director Kim also answered how individuals should respond when the stock market plummets 40% like a pandemic situation. (Please refer to the video for details.)
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