Why you shouldn't average down on losing stocks... The break-even mentality eliminates account profit opportunities

Summary

Lee Ji-hwan, CEO of Aurora Investment Advisory, delivers a psychology-focused lecture on why investors should not average down on losing stocks. He explains how break-even mentality and loss aversion trap capital, causing investors to miss profit opportunities. While the KOSPI appears to be bottoming, he advises holding semiconductor stocks and avoiding leveraged ETFs in this volatile period. Host Park Ga-young shares her own experience cutting a Hyundai Motor loss to rotate into robot names.

• Lee Ji-hwan explains why averaging down on losing stocks is destructive, locking capital that misses profit opportunities.
• He stresses cutting losses and letting winners run to achieve a positive skew in trading.
• He assesses that KOSPI appears to be forming a bottom, with volume patterns suggesting support, and advises holding through volatility.
• He specifically advises not to sell Samsung Electronics and other semiconductor stocks when they return to breakeven, expecting a strong breakout.
• He warns retail investors to avoid leveraged ETFs and margin in the current high-volatility environment.
• Host Park Ga-young shares her decision to sell Hyundai Motor at a loss and rotate into robot stocks.
• The session emphasizes developing a positive mindset and adhering to a manual over emotional decisions.