Why Your Account Melts in a Sideways Market and How to Deal With It

Administrative issues, ETFs, and ETNs are excluded. This increase in the number of stocks allows investors to respond to market conditions in a more real-time manner.

An increase in trading volume during after-work hours can heighten the temptation for impulsive trading or day trading. Therefore, it is necessary to approach cautiously and avoid emotional trading when negative news arises.

By accessing the DART website, finding the alert settings, and setting up your stocks of interest, you can receive immediate notifications whenever a disclosure for those stocks occurs.

One method could be to search for and set up algorithms that provide notifications when unusual news occurs, allowing for continuous reception of information.

The current market is not forming a clear trend. The chart also shows a continuous trendless market, and in such a situation, a wait-and-see attitude may be more advantageous than aggressive trading.

The KOSPI index's short-term moving averages have turned downward, weakening its trend. Whether it can stabilize at the 6,500 level is a critical point. Foreign selling pressure is contributing to market downturns, making the return of foreign investor inflow essential for a trend reversal.

The FOMC interest rate decision, to be announced early morning, is expected to significantly impact the market. A 25bp hike is currently considered likely, and if there's a freeze, it should be considered the worst-case scenario. Concerns about exchange rate losses due to a strong dollar and weak won exist, as does the possibility of establishing a basis for foreign inflow after the Chuseok holiday.

Compared to the KOSPI, the KOSDAQ market shows lower volatility and a relatively better trend. Support for the KOSDAQ 800-point level has been confirmed, and a symmetrical triangle chart pattern is forming. Accordingly, it is necessary to pay attention to alternative stocks such as Soobujang, secondary batteries, and robotics.

Large-cap stocks such as Samsung Electronics are 'constants' in the market, so a holding strategy rather than selling is recommended. Expectations for a quick rebound in large-cap stocks are unrealistic. Therefore, it is more advantageous to use available funds to implement a rebalancing strategy focused on KOSDAQ stocks.

Swing trading refers to buying and selling stocks within a 2-3 day to a week period. It is important to respond by equally dividing purchases across rotating sectors like Soobujang, secondary batteries, pharmaceutical bio, and robotics, and to decisively take profits in profit zones.

A swing strategy is based on the belief that even if the stock price falls, one can exit without realizing a loss. Therefore, it is necessary to apply the contrarian principle of buying when it falls and selling when it rises.

The phenomenon of the market reacting convulsively to short-term news is often temporary. Therefore, it is important for investors to make calm and rational judgments using after-market tools and so on.

This can be seen as a 'kicking away the ladder' logic, using the technology gap to make it difficult for latecomers to enter the market.

Hyosung Heavy Industries has consistently secured orders totaling 15 trillion won last year and 12 trillion won this year. However, its stock price showed a sideways trend after a 5-month correction. This is analyzed as an instance similar to André Kostolany's 'discrepancy between stock price and profit' theory, where the stock price moves first, and then profits follow the price. Currently, profits and order backlogs continue to accumulate.

From the client's perspective, there are advantages such as the convenience of integrated processing and efficiency in verification. However, for the performing company, a disadvantage exists where identifying the root cause can be difficult if cross-verification of various elements is delayed.

The transformer sector has now entered a phase of sufficient price adjustment and resolution of valuation controversies. Therefore, dollar-cost averaging into individual transformer stocks is recommended over ETFs. Continuing dollar-cost averaging with a mid-term perspective until next year can be a good strategy.

Since market interest is maintained and price levels and profits are supported in this sector, a swing strategy that accumulates profits steadily is effective. This differentiated approach can lead to positive investment results.

In a sideways market, premature trading can melt your account. It's crucial to prepare for volatility, such as during the holiday period after interest rate decisions. Prioritizing loss defense and securing cash through a mid-term strategy in the KOSDAQ market is paramount, rather than index-driven stocks led by foreign investors.