Investing in stocks to grow assets is a dream for many. Setting a goal of 100 million won is realistic and achievable with the right strategy. In this article, we analyze real-life cases of how investors successfully reached this milestone in the stock market.
Long-Term Investment vs. Short-Term Trading: Which is Better?
One of the first decisions an investor must make is whether to pursue long-term investing or short-term trading. Which strategy is more effective?
● Long-Term Investment: Value investors like Warren Buffett focus on the long-term growth of companies. They buy stocks and hold them for extended periods to maximize the power of compound interest.
● Short-Term Trading: This involves profiting from price fluctuations through frequent buying and selling. It requires a strong understanding of market trends and technical analysis.
Both approaches have produced success stories, but long-term investing is generally considered a more stable and reliable way to accumulate wealth.
Real Case Studies of Making 100 Million Won
1. Long-Term Investment: Samsung Electronics
Investor A purchased Samsung Electronics stocks worth 10 million won in 2010 when the share price was around 100,000 won. Over time, with stock splits and continuous growth, their investment exceeded 100 million won by 2023. This was achieved through dividends and the company's long-term performance.
2. Short-Term Trading: Profiting from Blue-Chip Stocks
Investor B achieved 100 million won in three years through short-term trading. They focused on blue-chip stocks like Kakao, Naver, and SK Hynix, buying at low points and selling after reaching a set profit margin. Strict stop-loss levels and profit targets were key factors in their success.
3. ETF Investment: Steady and Reliable Growth
Investor C invested in ETFs (Exchange-Traded Funds) rather than individual stocks. By diversifying into S&P 500 ETFs and KOSPI 200 ETFs, they achieved steady growth while minimizing risks. This strategy allows investors to benefit from market-wide performance rather than relying on specific companies.
Essential Principles for Reaching 100 Million Won
1. Diversification: Avoid putting all funds into a single stock. Spread investments across different sectors and asset classes to mitigate risks.
2. Consistent Investing: Stay committed to investing regularly, regardless of market fluctuations. A systematic investment plan can be highly effective.
3. Stop-Loss Strategy: Set predetermined exit points to prevent excessive losses.
4. Reinvestment Strategy: Reinvest dividends and profits to maximize compound interest.
5. Market Awareness: Stay informed about economic trends and company performance to make informed investment decisions.
Conclusion
Making 100 million won in the stock market is achievable with the right strategy and discipline. By learning from these real-life cases, you can develop an investment approach that suits your goals. Always conduct thorough research and manage risks carefully to ensure long-term success.
