For example, if you set your stop-loss threshold at 10%,
KOSPI index: 2% decline, my stock: 2% decline -> Keep
KOSPI index: 2% decline, my stock: 12% decline -> Stop-loss!
When it falls much more than the index, it means the value of my stock has been damaged
This formula applies the same way to taking profits
My stock: 100% gain -> Keep
My stock: 200% gain -> Keep
KOSPI index: 2% decline, my stock: 12% decline -> Stop-loss!
Now that I hear it, it's such an obvious story, but it's something I, a beginner investor, hadn't thought of at all.
During Lunar New Year, I was watching my laptop while listening to a stock beginner podcast,
the most difficult thing for beginner investors
When content about stop-loss selling came up, my ears perked up.
But what about the KOSPI 200 ETF?
You just don't stop-loss.
The end!
