Korean retail investors struggle to cut losses, holding on to or buying more losing stocks: survey
Two-thirds of Korean retail investors hold on to losing stocks or buy more in an attempt to lower their average purchase price, rather than sell at a loss, a report showed Thursday. The findings are based on an online survey of 1,000 people in their 20s to 50s with experience investing in domestic or overseas stocks, conducted by financial research institute Toss Insight from July 11 to Aug. 21.…
A recent survey of 1,000 Korean retail investors between the ages of 20 and 50 has revealed that two-thirds of them continue to hold onto or buy more losing stocks instead of selling them at a loss. Conducted by financial research institute Toss Insight from July 11 to August 21, the findings are based on an online survey. Forty-two percent of the respondents maintained their position in losing stocks, while 24.4 percent purchased additional shares in an effort to reduce their average purchase price.
Interestingly, investors who adhered to predetermined rules for cutting losses were less likely to report losses, with only 26.5 percent of this group experiencing losses in the previous year compared to 41.7 percent of those who continued holding losing stocks. The survey also highlighted a discrepancy between investors' self-perceived risk tolerance and their actual investment exposure.
Notably, 66 percent of those who identified themselves as conservative investors were found to have a high-risk profile.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- Foreigners remain net sellers of Korean stocks in Oct. en.yna.co.kr
- Foreigners remain net sellers of Korean stocks in October koreatimes.co.kr
