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 conducted by financial research institute Toss Insight found that two-thirds of Korean retail investors are holding onto or buying more losing stocks rather than selling them at a loss. The survey, which polled 1,000 individuals aged 20 to 50 who have experience investing in domestic or overseas stocks, was carried out between July 11 and August 21.
According to the findings, 42.2% of respondents chose to maintain their losing stocks while 24.4% opted to purchase additional shares to reduce their average purchase price.
Interestingly, the survey also noted that investors who adhere to predetermined rules for cutting their losses are less likely to report losses in their stock investments. Over the past year, 26.5% of this group reported losses, compared to 41.7% among those who continued holding onto losing stocks. The report also highlighted a discrepancy between investors' self-perceived risk tolerance and the actual risk they are exposed to.
Among those who identified as "conservative" investors, 66% were found to be engaged in high-risk investments.
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.
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