“The reason we fail at stock investing is
“Because I lost the psychological battle with the market.”

Learn from the best traders in Yeouido
Practical investment psychology strategies that create a 99% win rate

*** The sequel to the mega-bestseller, The Art of Trading
*** 2 million subscribers [Sampro TV] Highly recommended

In the spring of 2021, the South Korean stock market, which had plummeted due to the COVID-19 pandemic, hit bottom and more than doubled in value, thrilling investors.
But that was short-lived. Within a few months, the market began to decline, and most investors were left holding onto their losing assets and watching the market with pity.
Despite repeated warnings about the irrational surge in stock prices, why haven't investors made rational choices? It's not because they lack understanding of stock investment theory or because their investment strategies are flawed.
The problem was the 'mind' with which one approached the stock market.
When the crowd is moving in one direction as a group, the conservative mentality of not being able to break away from the group, greed and fear when buying, and loss aversion and denial of reality when selling make investing difficult.

Park Byeong-chang, a manager at Kyobo Securities who has been praised by investors as "God Byeong-chang" for his accurate market analysis and sharp insights on [Sampyo TV] and [Korea Economic TV], has realized one thing more important than any technical strategy while working as a trader in Yeouido for over 20 years.
In actual investment, contrary to theory, investors' psychology plays a decisive role in profitability.
Stock investment is an act in which people gather together and buy or sell stocks according to their own judgment.
Therefore, investor sentiment will create the flow of money and move prices.
Even if you look at market conditions, analyze financial statements, and study supply and demand and charts, in real-world investing, it is ultimately the investor's psychology that determines the success or failure of a trade.

This book is the sequel to the mega-bestseller "The Art of Trading," which thrilled investors by reaching number one on the overall rankings in 2021. It discusses 62 investment psychology strategies for perfecting the art of trading.
Each strategy is imbued with the experience, insight, and wisdom gleaned from over 20 years of experience as one of South Korea's top traders.
If you're an investor who's ever wondered why your stocks are falling, when exactly should you buy and sell, or whether you're truly suited to investing in stocks, this book will be a great guide not only for stock investing but also for achieving financial freedom in life.

"Why did we act in a way that defies common sense?", "Why doesn't stock investing always work out the way I want?" In fact, it's not because we "don't know the theory of stock investing."
It's not because you can't analyze companies, can't analyze charts, or have a wrong investment strategy.
It's a matter of the 'heart'.
When the crowd is moving in one direction as a group, the conservative mentality of not being able to break away from the group, greed and fear when buying, and loss aversion and denial of reality when selling lead to poor investments.

--- p.5

I've seen a lot of professional investors.
I've seen many people who have thrown themselves into the world of investing with dreams of hitting the jackpot.
As a result, investors desperate for short-term profits were more likely to fail.
Rather, those who observed the market leisurely were successful.
Desperate people look to soaring stocks.
Relaxed people watch for stocks that will soar.
Desperate investors need the stock price to go up today, but relaxed investors can expect it to go up tomorrow or the day after.
These little things make a huge difference.

--- p.31

In real investment, it is better to sell stocks that are falling rather than stocks that are rising.
Because rising stocks tend to rise further and falling stocks tend to fall further.
When a rising stock falls, it is thought to be a correction and buying begins, but when a falling stock falls further, the psychology of 'I can't stand it anymore' and 'This stock is not good after all' leads to selling.
Almost all investors say that selling is difficult.
They say that if you sell, it goes up, and if you buy, it goes down.
It sounds like a complaint, but if you repeat it, you will make mistakes due to psychological errors.
Not everyone can succeed all the time.
We are just trying to increase our chances of success.
Babe Ruth is the all-time home run king, but he also has the most strikeouts.
In stock investing, what matters is not the 'frequency' of success in all investments, but the 'size' of the return when success occurs.

--- p.88

Your own thoughts on predicting future stock prices by observing stock price trends, your own thoughts on reading the flow of change by observing indicators—those kinds of insights are not taught by experts.
Tools can be shared, but ideas cannot.
In the end, you have to make your own judgment, and the outcome is also determined by your own judgment.
When it comes to investing, the final decision on investment decisions cannot be outsourced.
It is entirely up to us, and we go through trial and error to make that judgment, but we constantly study investment to reduce that error.

--- p.115

Investing in stocks is about predicting a company's future performance and investing in its growth potential.
Because it is difficult to accurately predict a company's future growth (performance), stock prices fluctuate in a trend of rising and falling.
No matter how well you analyze a company, there are many cases where you can be in trouble if you misjudge macro variables such as the global economy.
Trying to understand stock prices solely by relying on current corporate performance is no different from judging them by looking at the rain falling down from a well.
When stock prices don't track earnings, you should question why.
When a stock price moves in a way that is inexplicable based on current performance, the answer must be sought in the 'price movement' itself.
If the stock price does not rise after good news, there is a selling pressure.
If you are holding on to a stock while waiting for good news and the stock price does not respond to the good news, it means that the stock price has either fully reflected the good news or there is bad news that I am not aware of.
If the stock price does not fall after bad news, it is because there is buying in the supply and demand.
Buying on bad news means that the bad news has been fully reflected or that there is new good news.
The answer lies in the stock price.
You shouldn't force yourself to hold a stock against its stock price movements.
The crowd is foolish and I am not wise.
--- p.214~215

Even flowers you don't like will start to like you if you keep looking at them.
This is the case in most cases where large losses are incurred while investing in stocks.
Even though it has already withered and become an ugly flower, if you hold on to it with the thought that it will become a pretty flower, you will suffer a great loss.
In the stock market, pretty flowers (stocks) are flowers (stocks) that give me profit.
In the stock market, the ugly flower (stock) is the flower (stock) that causes me loss.
That's it.
You should not create artificial meaning in the stocks you own.
There may be a particular style of flower (stock) that you like differently from others.
But usually, the flower that the crowd likes ends up blooming into a pretty flower.

--- p.233

A rise in stock prices reflects the sentiment of investors wanting to buy, while a fall reflects the sentiment of investors wanting to sell.
Psychology drives supply and demand, and supply and demand move stock prices.
In a market where investors have a strong desire to buy immediately, buying should be done quickly and selling should be done slowly. However, in a situation where investor sentiment is not good, selling should be done quickly and buying should be done slowly.
It should be emphasized that if you miss the timing of buying, you miss the opportunity to make a profit, but if you miss the timing of selling, it leads to a decrease in your deposit assets.

--- p.280~281

Sheep have a habit of moving in flocks.
The sheep watch the fight between the bull and the bear, and if they think the bull will win, they flock to the bull, and if they think the bear will win, they flock to the bear.
The sheep watch the fight between the bull and the bear, not their own fight, to see who will win.
If you go to the bull because you think the bull will win, but the bear ends up winning, the sheep will be devastated.
When the judgment of who will win is in turmoil, countless sheep are badly hurt.
In a situation where the bull clearly wins, most of the sheep also make money.
If a small number of sheep go in the opposite direction, it can result in a big loss.
While most investors who followed the bulls in 2020 were able to easily make profits, some investors suffered huge losses by investing in inverse index funds.

--- p.332