"Is 8,000 not the peak?" Retail investors with debt are left reeling as KOSPI tumbles: "There is no time to hold out" [World of Retail Investors]

/Newsis \r\n [Financial News] Im Ji-woong, 36, began investing in stocks earlier this year. He started later than most, so he ignored other names and went all in on Samsung Electronics and SK hynix.
Thanks to that, his returns have been decent. These days, checking his steadily rising gains every morning has become his favorite routine.
But Im said his satisfaction has been matched by growing regret. "If I had just 10 million won more in seed money, I would have made at least 3 million won more," he said.
/Newsis \r\n [Financial News] Im Ji-woong, 36, began investing in stocks earlier this year. He started later than most, so he ignored other names and went all in on Samsung Electronics and SK hynix./Newsis \r\n [Financial News] Im Ji-woong, 36, began investing in stocks earlier this year. He started later than most, so he ignored other names and went all in on Samsung Electronics and SK hynix.
No matter how good the return is, I keep thinking it means little if the initial capital is too small. " "If I miss it now, I may never get another chance" as debt-fueled investing tops 36 trillion won Im is not alone in thinking this way.Many individual investors are already borrowing money to enter the market. Margin loan balances, a key indicator of debt-fueled investing, surpassed 36 trillion won as of the 13th, setting an all-time high.Like Im, more and more investors are moving from the regret of "if only I had a little more seed money" to margin borrowing. 65 billion won as of the 13th.
7% from the start of the year. The increase was more than three times the overall market's 32% rise in margin loan balances over the same period.As KOSPI has been driven higher by Samsung Electronics and SK hynix, some say the market's heat, fueled by fear of missing out (FOMO), has already crossed a dangerous line. 78, breaking the 8,000 level for the first time ever.It came just seven trading days after the index crossed 7,000 on the 6th, and some in the securities industry are even forecasting a "Manspi. " Im also felt encouraged by the term and wondered whether he should borrow money to buy more.
/Newsis \r\n [Financial News] Im Ji-woong, 36, began investing in stocks earlier this year. He started later than most, so he ignored other names and went all in on Samsung Electronics and SK hynix./Newsis \r\n [Financial News] Im Ji-woong, 36, began investing in stocks earlier this year. He started later than most, so he ignored other names and went all in on Samsung Electronics and SK hynix.
m. a sell sidecar was triggered.
Foreign investors dumped more than 5 trillion won worth of shares. Analysts said profit-taking in large-cap semiconductor stocks, which had risen sharply recently, helped drag the index lower.
23 points from the previous session. 66%, respectively.
/Newsis \r\n [Financial News] Im Ji-woong, 36, began investing in stocks earlier this year. He started later than most, so he ignored other names and went all in on Samsung Electronics and SK hynix./Newsis \r\n [Financial News] Im Ji-woong, 36, began investing in stocks earlier this year. He started later than most, so he ignored other names and went all in on Samsung Electronics and SK hynix.
If prices rise, there is no problem. But if prices fall and the collateral ratio drops, trouble begins.If repayment is not made by the deadline, the securities firm recovers the loan through a forced sale of securities .That means losses are locked in regardless of the investor's wishes.In Im's case, his Samsung Electronics and SK hynix holdings are still in profit, so he can ride out a down day like the one on the 15th.But if Im had increased his margin borrowing and bought more, the story would be different.
The moment his collateral ratio fell, a forced sale of securities would lock in the loss.The more debt-fueled buying there is, the larger the forced-sale volume becomes, creating a vicious cycle that deepens losses in a falling market.That is why experts warn against debt-fueled investing, saying "It may feel good when stock prices are rising, but when they fall, the damage can be enormous.
/Newsis \r\n [Financial News] Im Ji-woong, 36, began investing in stocks earlier this year. He started later than most, so he ignored other names and went all in on Samsung Electronics and SK hynix./Newsis \r\n [Financial News] Im Ji-woong, 36, began investing in stocks earlier this year. He started later than most, so he ignored other names and went all in on Samsung Electronics and SK hynix.
bng@fnnews.com Kim Hee-sun Reporter