"When the Jensen Huang 'sam-so' news broke, should I have sold?" Retail investors in alliance stocks trapped in a weekend of false hope [World of Retail Investors]

05. \r\n [Financial News] Office worker Choi Bo-in, 35, a pseudonym, could not put down her smartphone all weekend.
Last week, she bought large amounts of so-called 'NVIDIA alliance stocks' such as LG Group shares, Doosan Robotics, and Naver after news broke that NVIDIA CEO Jensen Huang would visit Korea. The stocks Huang had mentioned surged to their daily upper limits after news of his visit emerged.
Choi rushed to buy in as well. She thought the shares were already near their peak, but she believed Huang's visit would be a positive catalyst and became convinced they would rise further.
But from the moment Choi bought in, prices suddenly began to slide. Even on the day before Huang's arrival, she was staring at a deeply red account and seriously considering cutting her losses.
05. \r\n [Financial News] Office worker Choi Bo-in, 35, a pseudonym, could not put down her smartphone all weekend.05. \r\n [Financial News] Office worker Choi Bo-in, 35, a pseudonym, could not put down her smartphone all weekend.
In the end, she found herself trapped over the weekend, unable to act as stock prices showed signs of a modest rebound after Huang's arrival. "Buy on rumors, sell on news".
once again, the rule held true This week, South Korea's stock market moved on the name Jensen Huang alone. Naver surged after cooperation was unveiled in a keynote speech at GTC Taipei and it was named a strategic partner in Sovereign AI and Physical AI.
LG Electronics also benefited from news that it was developing a Physical AI model based on NVIDIA's Isaac GR00T. Robot-related stocks, including Doosan Robotics, rallied for days after Huang said, "I hope NVIDIA can also contribute to the development of robotics in Korea." But the decline began afterward, and on the 5th, when Huang actually set foot in Korea, the market turned cold. 15%, from the previous session.62%. \r\nRegarding this, Han Ji-young, a researcher at KIWOOM Securities Co., Ltd. , "The Jensen Huang visit event, which had been a popular theme in the domestic market since the end of last month, has also entered a stage of material exhaustion." She noted. To make matters worse, losses widened as weakness in U.
05. \r\n [Financial News] Office worker Choi Bo-in, 35, a pseudonym, could not put down her smartphone all weekend.05. \r\n [Financial News] Office worker Choi Bo-in, 35, a pseudonym, could not put down her smartphone all weekend.
"Buy on rumors, sell on news" That old Wall Street saying was reproduced almost exactly once again. Those who jumped in during the 'rumor' phase of Huang's visit made profits.But investors who entered during the officially reported 'news' phase, after the visit schedule was confirmed, had to absorb the wave of profit-taking. Two psychological barriers to selling There are two psychological reasons why investors fail to sell even as losses deepen: 'The disposition effect' and 'optimism bias.' A self-deprecating phrase often used in stock communities, "If you don't sell, it isn't a loss," captures the disposition effect well. It means the fear that "selling now would lock in a loss" becomes stronger than the rational judgment that realizing the loss could prevent even greater damage.'Optimism bias' is a kind of expectation. People tend to overvalue vivid, exciting positives that support their own decisions, while underweighting negative developments that work against the stocks they chose.For Choi, the Samsung-Soju Meeting was exactly that kind of positive catalyst. On the 5th, Huang met with SK Group Chairman Chey Tae-won, LG Group Chairman Koo Kwang-mo, and Naver Chairman Lee Hae-jin over pork belly and soju at the Samsung-Soju Meeting held near Hongdae in Mapo District, Seoul.Depending on what was said there, investors hoped the market on Monday the 8th could change direction.That hope, combined with the disposition effect, pushed them into a wait-and-see stance.A weekend with nothing to do, waiting only for Monday The fact that a weekend with no possible action was in between further heightened the psychological anxiety of individual investors like Choi.If the market were open, they could ease their stress by buying or selling, whether prices fell further or rebounded.
But with the Korean stock market closed for the weekend, no action was possible.All weekend long, retail investors were exposed in real time to news stories analyzing Huang's itinerary and reading between the lines of what was said at the Samsung-Soju Meeting, all while being unable to do anything.Whether the domestic market will move in a new direction on the 8th, when they escape this kind of psychological confinement driven by anxiety and impatience, remains uncertain.
05. \r\n [Financial News] Office worker Choi Bo-in, 35, a pseudonym, could not put down her smartphone all weekend.05. \r\n [Financial News] Office worker Choi Bo-in, 35, a pseudonym, could not put down her smartphone all weekend.
I don't want to become one of those people who keep saying, "I should have bought, I should have sold, I should have held.
" Stocks, real estate, and investing all seem to work out for everyone except me.
05. \r\n [Financial News] Office worker Choi Bo-in, 35, a pseudonym, could not put down her smartphone all weekend.05. \r\n [Financial News] Office worker Choi Bo-in, 35, a pseudonym, could not put down her smartphone all weekend.
bng@fnnews.com Kim Hee-sun Reporter