There have been many discussions about the recent case of long-term investment in Hynix due to a power outage.
My mind always shouts for long-term investment, but in reality, I regret that my finger hastily pressed the sell button hhhh
So, I thought it would be helpful to someone, so I organized my long-term investment or long-term holding strategy in writing.
I am also writing this article to adhere to my principles.
Situation: Purchase 100 shares of Stock A at 10,000 won per share for a total of 1,000,000 won
What if the return rate is 100%?
10,000 won per share, 100 shares held, valuation of 2,000,000 won
If you sell 50% of the holdings here?
10,000 won per share, 50 shares sold, 1,000,000 won cash = Original capital recovery
10,000 won per share, 50 shares transferred to Account C, 1,000,000 won for continued investment
If the A stock in Account C continues to rise?
What if the return rate of A stock in Account C drops to 50%?
Sell all - 15,000 won per share, 50 shares sold, 750,000 won cash
Summarizing
1,000,000 won original capital recovery + the remaining 50 shares going over 100%, 1,000,000 + @ = Over 100% return rate
Or
1,000,000 won original capital recovery + the remaining 50 shares dropping to 50%, 750,000 cash = 75% return rate
What are the advantages?
The original capital has been recovered, and the profit is being reinvested, so there is psychological stability and it is possible to hold long-term comfortably
Original capital recovery allows for cash securing or reinvestment in other stocks
When the return rate drops to 50%, mechanical selling secures a minimum of 75% return
What are the disadvantages?
If you hold it all from the beginning, the profit could have doubled
If you held all 100 shares and the return rate was 500%, it would be 60,000 won per share, a total of 6 million won (1 million won original capital, 5 million won profit)
If you sell 50% (original capital recovery) and hold 50 shares, the total is 4 million won (1 million won original capital recovery + 3 million won profit)
Will I be able to control my finger and hold on for a long time even when seeing an incredibly high rise and not knowing when it will fall?
I say 'no' hhhh
Ultimately, in the stock market, psychological control is important. Therefore, I choose a moderate level of profit and my psychological stability, choosing to survive in the stock market for a long time.
After all, isn't it the one who survives with an empty can that is strong? hhh
I hope everyone has a good day and controls their emotions well. I will end this article here~
