It gave me an average annual return of 103%.
Everything you need to know about momentum investing!

The stock market is expected to face significant challenges after 2025 due to major issues such as the intensification of Trump's tariff war and the resumption of suspended short selling.
But even amidst these adverse circumstances, there is a possibility of a turnaround.
If the reversal creates momentum, it could create new opportunities for some industries.
So how can we seize this momentum?

The author, who has been in the stock market for 10 years as an analyst and 10 years as a trader, says that individual investors have access to as much information as institutional investors, and wrote this book to help individual investors succeed in momentum investing.
The author emphasizes that we have entered an era of momentum investing, not value investing.
The author believes that value investing has virtually disappeared from the Korean stock market due to the lack of liquidity in the stock market and the emergence of the US stock market as an attractive alternative investment.
As the perception spreads that there is no need to struggle with value investing in the narrow Korean stock market, value investing in the Korean stock market has completely lost its direction.
This is why momentum investing, which involves actively interpreting new information and making aggressive investments, rather than passively buying and holding undervalued stocks, is said to be the most suitable investment method for the domestic market.


This book helps you take your first steps toward momentum investing by providing practical, practical information, such as how to record past trades and what the market perspective is, to ensure successful momentum investing.
We provide detailed guidance on investment methods through examples of momentum investments in companies such as Samyang Foods, Alteogen, and DL E&C.
It is difficult to determine when to buy, but it is even more difficult to determine when to sell.
There are many ways to invest in momentum, but the core strategy involves buying stocks when a large transaction occurs that could bring about a fundamental change in the company.
Momentum investing is an investment strategy that maximizes returns by holding onto stocks until an uptrend ends. This article also provides specific details on how to determine the best time to sell.
We also introduce 'capital limit chasing (sangtta),' a sub-concept of momentum investing.
If you trade while adhering to the advantages and methodology of mutual fund trading, you can achieve explosive returns, but it is also emphasized that because of the high volatility, a lot of study is required and meticulous attention must be paid.


Nowadays, even individual investors can conduct corporate analysis that is comparable to that of analysts if they put their mind to it.
In this environment, it is important to set the direction of investment based on the correct interpretation and wait for an opportunity.
There is no right answer to making money in the stock market.
However, this book will be of great help to individual investors in finding their own investment methods and solutions.
If you repeatedly review the material covered in this book, compare it to emerging phenomena in the actual market, and internalize it into your own expertise, you will soon be able to develop your own complete investment technique.

The "concentration phenomenon," the most significant characteristic of the current Korean stock market, maximizes the returns of momentum investing.
Because market liquidity is sparse, buying is concentrated in sectors with favorable conditions, and investors in sectors that have been neglected due to this concentration are also starting to follow suit.
In addition, the rapid expansion of the ETF market has further exacerbated the phenomenon of sector concentration, making the Korean stock market a market where only those who can afford to buy go.
In other words, now is clearly the era of ‘momentum investment.’

---From "Part 1: Value Investing is Over! Now is the Era of Momentum Investing"

Stocks are history repeating itself.
Although not exactly the same thing happens, similar events occur and stock prices move in similar patterns.
Therefore, it is essential to remember the correlation between past events and stock prices.
Most world-renowned investors have a keen interest in history.
Is it because they have a special interest in humanity? More likely, it's because history is directly linked to investment returns.


Warren Buffett has often mentioned that reading history books is a hobby, and he has even studied history books in depth, including the 1929 stock market crash.
Ray Dalio, Howard Marks, and George Soros are also representative investors who study history as a hobby and use it for investment.
Even these renowned investors deeply analyze the past to determine how upcoming events will impact future stock prices. For individual investors like us, jumping into the market unprepared is simply reckless.

---From "Part 1: Value Investing is Over! Now is the Era of Momentum Investing"

Individual investors are exposed to countless news and disclosures.
However, even if I see something positive, there are many cases where the actual stock price does not follow a positive trend.
This is because my perspective and the market's perspective are different.
There are many cases where the stock price does not reflect the new facts I see, such as the fact that the stock price may have already priced them in, or the fact that the information is not actually good but I think it is good, or for various other reasons.
This is the most important part of momentum investing.
We must make an effort to align 'my perspective' with 'the market's perspective'.

---From "Part 1: Value Investing is Over! Now is the Era of Momentum Investing"

"A newly born company must focus!" This is, in fact, the most central theme of this book.
To make momentum investments in the Korean stock market, you must focus on emerging companies.
There are many different examples of companies being reborn.
These include unprecedented, impactful performance, brisk sales of new businesses or products, visible profit growth through large-scale contracts, connections with emerging industries globally, a perennial stock market theme of turnaround, and unprecedented phenomena.


In addition to the six phenomena listed above, the emergence of large-scale beekeeping involving bulk transactions is also essential.
Volume is a measure of interest in the market.
A large transaction that causes a stir in the market is a signal that the company is about to have a second birth.

---From "Part 2: History Repeats Itself! Analysis of Momentum Investment Case Studies"

Typically, major primary contractors adopt a strategy of diversifying their subcontractors to ensure a stable supply of raw materials.
However, in the case of Buldak Bokkeum Myeon, securing additional suppliers is not easy because the core competitiveness lies in the ‘sauce.’
Expanding suppliers means sharing the core secrets of your current sources with other companies, which can lead to a significant risk of "core technology leaks."
For this reason, Samyang Foods is not selecting additional suppliers, and thus S&D is likely to continue to maintain stable sales growth and high profitability.
This is a structure similar to how the secret recipe for Coca-Cola is strictly protected.
---From "Part 2: History Repeats Itself! Analysis of Momentum Investment Case Studies"

It is noteworthy that tofu is emerging as a popular item in the United States.
In the United States, tofu is gaining popularity not only among vegetarians but also among the general public for its texture and the complete protein content it provides, and the market for tofu is expanding in the United States.
Among them, it was found that Pulmuone's tofu has secured an absolute market share.


It has been found that Pulmuone's tofu products, including firm tofu, tofu with reduced soybean odor, and tofu in the shape of hamburger patties, are successfully localized and are establishing themselves as affordable and healthy products.
The U.S. tofu market is worth approximately $420 million, and Pulmuone's market share is estimated to be approximately 75% as of the end of the third quarter of 2024.

---From "Part 2: History Repeats Itself! Analysis of Momentum Investment Case Studies"

One of the most common sayings used in the Korean stock market is “buying is a skill, selling is an art.”
It's a joke that says that while it's difficult to know when to buy, it's even more difficult to know when to sell.


There are countless methods for investing in stocks, and the approach to buying and selling will vary accordingly.
While this book cannot cover every methodology, the core trading principle we emphasize here is defining momentum as "a large trade accompanied by material that could fundamentally change the company."
The strategy of buying at this point has been called momentum investing.


Then, the question remains: “When should we determine the fundamental selling point for momentum investing?”
Basically, momentum investing is an investment method that maximizes returns by holding stocks until the end of an upward trend when the price of the stock begins to rise.
In other words, the basic principle of profit realization in momentum investing is 'selling when the invested momentum ends.'

---From "PART 3: DRIVE FOR THE LONG HAUL! FINDING THE SELL POINT IN MOMENTUM Investing"

We previously defined the buying point for momentum investing as "the point when a major positive factor emerges and the company is poised for a second growth spurt."
At the very least, since this is a situation where a major windfall has occurred that can be described as a "second startup," it is necessary to base mid-term investments on the upward trend that will ultimately lead to profits.
However, investors who approach this type of investment as a momentum investment (I emphasize that this does not apply to long-term investors, and I hope that those who hold the stock for the long term do not misunderstand)
I would like to emphasize once again that this is a selling point for investors who bought based on 'momentum' rather than 'company value'.
(This applies to all stocks below.) The point at which you must sell is when a 'new fact' emerges that undermines the investment logic you initially approached.

---From "PART 3: DRIVE FOR THE LONG HAUL! FINDING THE SELL POINT IN MOMENTUM Investing"

I think that stocks that qualify for momentum investing should be closely monitored for their 10-day and 20-day moving averages.
In particular, stocks that have properly gained momentum typically rise without breaking the 10-day moving average. This is not a formula or anything, but rather a conclusion I reached after observing the domestic stock market for a long time.


If the price breaks above the 10-day moving average at the closing price and fails to rise above the 10-day moving average within three days, it is considered that momentum has been lost in the short term.
Depending on the strength of the material, a breakout of the 20-day moving average for three or more days is also one method, but I prefer the 10-day moving average because a drop to the 20-day moving average will reverse a significant portion of the gains made so far.

---From "PART 3: DRIVE FOR THE LONG HAUL! FINDING THE SELL POINT IN MOMENTUM Investing"

In the larger context, limit chasing is a sub-concept of momentum investing.
However, the biggest difference between momentum investing and stock trading can be seen as the difference in the 'target of attack'.
Momentum investing targets leading stocks, while sangtta focuses on thematic stocks or individual materials at a significantly higher rate.
In other words, both momentum investing and sangta have something in common in that they are based on 'materials', but they differ in the market capitalization, supply and demand, and sustainability of the companies they target.


Because of its high volatility, it is difficult to recommend to novice investors.
Therefore, when investing in momentum, just like with momentum investing, you should repeatedly learn, remember the strength and persistence of the materials, and apply them to newly occurring events to maximize profits in a short period of time.

---From "Part 4: Risky but Attractive! The Strategy of Chasing the Upper Limit"

There are many different logics behind stock trading in the market, but one of the most rational and fundamental approaches to stock trading, in my opinion, is avoidance of the pain of stock trading.
The logic behind this avoidance of suffering is as follows:

“Stock investment is painful from the moment you start.
The pain of wondering which stock to buy, the pain of choosing whether to buy that stock now or not, the pain if you buy and it falls, the pain if you don't buy and it goes up, the pain if you buy a little more and it goes up a lot, the pain if you buy more at the peak because you think it will go up, the pain if you sell and it goes up, the pain if you don't sell and it goes down - in short, everything about stock investing is pain.
But Sangta minimizes that pain.”
---From "Part 4: Risky but Attractive! The Strategy of Chasing the Upper Limit"

One of my favorite ingredients in the stock market is freshness.
The more you hear about a material that you have never seen before, the stronger the buying force in the market will be.
I'm not just talking about the first ingredient that comes out.
Materials that were only mentioned years ago and then came back to the surface are also fresh.
And the less ridiculous the material, the better.


While seemingly absurd materials like superconductors and treasure ships often form powerful themes and drive market prices, the more plausible and reliable the material is, the better.
---From "Part 4: Risky but Attractive! The Strategy of Chasing the Upper Limit"

If you spend time investing, even if it's not a deep analysis, at least understanding the swing factors (determining variables that determine a company's performance) of the companies you're investing in and identifying websites where you can obtain these insights, I believe that ordinary investors will be able to acquire investment insights comparable to those of institutional investors.
In fact, considering that most fund managers, excluding those at the headquarters level, have about 5-6 years of experience, I have no doubt that investors with over 10 years of investment analysis experience can possess investment insights comparable to those of fund managers or analysts.

---From "Part 5: Become Friends with Companies! How to Approach Like an Analyst"

Contacting or visiting companies isn't the exclusive domain of analysts or fund managers.
Individual investors also have rights and can access investment companies in a variety of ways.

However, it is true that it is quite difficult for individual investors to make direct contact with companies.
Even if individual contact is made, it is highly unlikely that the company will respond to questions about short-term performance issues or new product release schedules due to compliance issues.

However, you can easily learn about the company's overall situation, long-term vision, and its position on business reports and new news through personal contact.
Because it is also the duty of listed companies to answer investors' questions.
---From "Part 5: Become Friends with Companies! How to Approach Like an Analyst"

It's not that I don't have information because I'm an individual investor.
Individual investors do not have access to information.
The best information among them is the business report.
Investing without reviewing quarterly reports, semi-annual reports, business reports, etc. is 'blind investment.'

These reports detail everything a company does.
The specific classification of sales, variable costs such as labor costs, and depreciation due to facility investment are all recorded in detail.
You can also learn more about the types and values ​​of securities held by the company, as well as the extent of its exposure to each currency.

---From "Part 5: Become Friends with Companies! How to Approach Like an Analyst"