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| A full-time investor checking stock prices using a laptop and smartphone |
Introduction:
Dear readers, hello! Today, I would like to share with you the daily lives of stock investors in Korea.
Even in other OECD countries, including the United States, stock investors hope to make substantial profits in a short period with a small investment.
If anyone wishes to offer a different perspective, please feel free to share it with me.
In reality, there are investors who aim for dividend income while holding stocks for a long time, and there are many true investors who seek only the appreciation of the stocks they hold, even if there are no dividends—just like the investors who have long held shares in Warren Buffett’s Berkshire Hathaway.
In Korea, there are also many investors with such a long-term perspective. An online community formed by these long-term investors has over 250,000 members.
Many members of this community believe that a minimum holding period of 3 to 5 years is appropriate for a single stock.
So, it is not true that Koreans always seek “quick wins” in investing.
A variety of investment styles and temperaments are expressed even in the world of investing.
Some investors set their investment period to six months and carefully select a single stock that fits their strategy.
It is said that one such investor made 5 billion KRW in a short period using this approach.
1. Those More Attracted to Trading
On the other hand, there are many investors in Korea who fully demonstrate their quick decision-making and rapid execution in investing.
There are traders who make 1 to 5 million KRW per day through such trading.
On a trading month of 20 days, this could amount to 20 million KRW to, at times, as much as 100 million KRW.
Of course, traders with such skills are rare. Nevertheless, many people choose trading as a side job.
They are full-time employees who trade using their spare time.
Common strategies include after-hours trading and end-of-day “closing price bets.”
Occasionally, in interviews, they explain their strategies, and the methods are generally similar.
Since full-time employees cannot watch the markets during the day, these strategies are suitable for their schedules.
Interestingly, employee investors sometimes earn more than full-time traders.
It seems that psychological stability has a significant impact on trading results.
There are also many cases where legendary U.S. traders, such as Jesse Livermore and Gerald Loeb, have taught strategies applied successfully in the Korean market.
Even if the market differs, the techniques work.
Livermore’s pair trading and Loeb’s practice of buying and selling only one stock are well-known among Korean traders and are applied in real trading.
2. Reality Is Not Easy
In recent years, the sharp upward trend in the U.S. stock market allowed many Korean investors to profit from U.S. stocks.
However, it cannot be said that all investors who invested in the U.S. market earned profits.
Many invested only small amounts, so the results may have been modest, but it was undoubtedly a valuable experience.
Korean investors often jokingly say that it is difficult for a Warren Buffett to emerge in Korea.
There are two main reasons: one is the long-standing box range of the Korean stock market, and the other is the small market size.
While companies such as Samsung Electronics, LG Electronics, and Hyundai Motor exist, when compared to the countless global companies in the U.S., there is still a long way to go.
Korea’s stock market traditionally opened at 9:00 a.m. and closed at 3:30 p.m., but with the emergence of alternative trading platforms, actual trading hours have become much longer.
Recently, the opening time is being considered to start earlier, and the closing time later, making the situation more flexible.
3. A Day in the Life of a Full-Time Investor
3-1. Preparing for the Battle Early
Full-time investor Mr. Lee wakes up at 6:00 a.m., washes up, and heads to his office.
When he retired from his company to pursue stock investing, one of the things he prepared was a small office—a decision he now sees as very wise.
Working from home might reduce fixed expenses, but it makes it difficult to concentrate professionally due to the lack of separation from private life.
His office is a 10-minute bike ride along a riverside path from his home, which is beneficial for both reflection and exercise during his commute.
The river is visible even from his office on the third floor, which he believes contributes to his psychological stability.
Upon arriving, he first turns on his computer, pours roasted coffee beans into the grinder, and grinds coffee for the day. The aroma fills the small office.
He then places the ground coffee into the coffee maker, checks the recently closed U.S. stock markets on his monitor, since the Dow Jones and Nasdaq indices directly influence the Korean market the next day.
Both the Dow and Nasdaq are down, so Mr. Lee anticipates a declining trend for the day.
Although he tries not to pre-judge, the trading scenario is already forming in his mind.
Today, he will trade with only one-tenth of his usual capital.
Although alternative trading platforms allow trading from 8:00 a.m., Mr. Lee begins trading at the usual 9:00 a.m.
He retrieves a sandwich from the refrigerator, heats it in the microwave, and has it with his coffee for breakfast.
3-2. Proceeding Carefully in a Downtrend
Next, Mr. Lee checks news related to the stocks he will trade today.
The regular market opens promptly at 9:00 a.m.
For the first 10 to 20 minutes after the market opens, he mainly observes the flow.
It is difficult to know which stock will lead early in the session, and whether the trend will continue or reverse is hard to predict in the beginning.
After finishing his remaining coffee, he makes his first purchase around 9:30 a.m.
He buys at a breakout and sells immediately after the one-minute candlestick completes.
Although he earned a profit, the return was only 0.6%.
Still, he is satisfied with performing well in a declining market.
As the indices continue to fall, Mr. Lee decides to finish his morning trading early.
3-3. Food Is Fuel
He goes out a little early for lunch.
Although Warren Buffett enjoys hamburgers, Koreans need rice, so he heads to a spicy pork rice bowl restaurant.
It is around 11:10 a.m., and the restaurant is not crowded.
He wants to eat quickly and leave.
By moving a little faster, he avoids crowded spaces and can secure a seat at a café afterward to relax.
“Move just one step faster” is his guiding principle.
The dish arrives.
The spicy pork rice bowl, made with high-quality pork, never gets old.
The restaurant owner makes the kimchi herself, which tastes exceptional.
Usually, in noodle or soup restaurants, kimchi is the most important side dish, but in spicy pork rice restaurants, attention to kimchi is generally less.
However, this restaurant puts much effort into its kimchi, making Mr. Lee a regular customer.
After lunch, he walks along the riverside path and then enters a café.
Although he already had coffee in the morning, he orders a café mocha after lunch since his body feels warm.
This is his favorite menu.
In the café, office workers are waiting for their To-go coffee before returning to work.
Some are sitting at tables with laptops, working on various tasks.
Mr. Lee briefly checks the current market trend on his phone.
The market is still in a decline.
He decides to stop trading for today and go exercise.
The café mocha arrives.
The combination of cinnamon-scented ice cream and coffee always lifts his spirits.
Trading may not be sweet every day, but it is certainly the driving force that pushes him forward.
After finishing his coffee, he steps out of the café.
conclusion: Believing Tomorrow Will Be Better Than Today
Mr. Lee plans to return to his office after a light run along the riverside.
Watching carp swimming in the water, he begins to run.
He encourages himself, believing that tomorrow will be better than today.
Many aspiring investors are hoping for a financially better life or preparing for early retirement through trading.
Dear readers, does Mr. Lee’s story remind you of someone you know?
I sincerely wish all investors and traders successful investing.
Thank you for reading.
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