Chapter 9

9. Stocks Are Difficult (1)

The morning after opening his account, Yuseojun woke up early.

It was the day he had decided to make his first stock purchase, so he needed to gather a bit of information. At this time, stock information was typically available through the exchange's newsletter and newspapers.

Naturally, the only method he could use was the newspaper.

Newspapers were also delivered to the dormitory. They were placed at the dormitory entrance early in the morning, one for each person who had subscribed. Since he hadn't subscribed yet, the only way for him to read the newspaper was to sneak a look before the subscribers woke up.

Until now, when Yuseojun opened the newspaper, he would always start with the sports section. He would read the professional baseball news first and either skip the rest or just glance at the major headlines on each page.

Today was different. Starting with stocks, the sections he focused on in the newspaper had changed. There were many interesting articles, but the first page he opened was the stock section. The page was densely packed with stock listings divided into the first and second sections.

The trend of the stock market on the previous day, March 25th, caught his eye.

The first article that caught Yuseojun's attention was the news that the stock trading volume on March 25th had broken the 100 billion won mark for the first time. The daily trading volume was a staggering 100 million shares. At the same time, there was news that the stock market index had risen sharply due to the recent surge in large-cap stocks over the past three days, and the number of new investors entering the market for the first time had increased.

What particularly caught his eye was the article stating that 121 stocks, or over 30% of all listed stocks, had risen by more than 100% since the beginning of the year.

"100%... "

Doubling your money in just a few months seemed like a dream. He carefully examined the closing prices of the stocks listed in the newspaper. Many of the companies were unfamiliar, but there were also some he recognized.

"I'll try it out as practice."

The company that caught his eye was Hyundai Motor. It was a representative company that produced the most commonly seen cars in his surroundings. With high trading volume, trading would not be difficult. The stock, priced at 500 won per share, had hit the upper limit on the 25th, rising 100 won to close at 2820 won. Although it had risen too much the previous day, the stock market adage "Buy on the rise" made it seem suitable for his first trade.

He marked Hyundai Motor and returned to his room.

Yuseojun carefully opened his diary. As expected, there was no mention of stocks in March and April. According to the diary, he first received his initial capital at the end of April after the midterm exams, and actual trading began in May, so there was no useful information about stock movements before that. Until then, he would have to make trades based on his own judgment.

Just before lunchtime, Yuseojun called the securities company from the public phone booth.

The clear voice of his account manager, Seohana, came through.

"Can I place an order to buy stocks?"

Yuseojun gave her his account number.

"Oh, it's Yuseojun? Please wait a moment. Which stock are you trading?"

"What is the current price of Hyundai Motor?"

The sound of her looking up the stock came through the phone.

"The current price of Hyundai Motor is 2870 won, up 50 won from yesterday. The ask price is 80 won, and the bid price is 70 won."

"Please place an order to buy 80 shares at the current price. The password is... "

The trading process was simpler than he expected. He would have to check the execution status by calling back later or after the market closed.

During the afternoon class, he couldn't concentrate on his studies, being too curious about whether his trade had been executed.

When the market closed, he confirmed that he had bought 80 shares of Hyundai Motor at 2870 won per share.

From that day on, every morning when he woke up, Yuseojun would go to the dormitory entrance to read the delivered newspaper, checking the price of Hyundai Motor, which he had bought.

Unfortunately, the stock he bought did not rise. On March 26th, the day he bought it, it fell to 2800 won, down 20 won from the previous day and 70 won from his purchase price.

Although he was a bit disappointed, there was no reason to be discouraged. He thought of it as practice and kept an eye on the stock's movement. The problem was that the next day was also uneventful. The stock price fluctuated sideways and then slightly declined. The following day, it plummeted, closing at 2710 won, down 160 won from his purchase price. Even after deducting fees, his loss amounted to 12,800 won.

He sighed deeply. The world was not so easy after all.

In the end, on the last day of March, he sold the stock at the closing price. The price had slightly recovered to 2780 won, resulting in a loss of 90 won per share, totaling 7,200 won. Considering that a lunch meal at the student cafeteria cost 400 won, he had lost the equivalent of 18 days' worth of lunch.

Despite dozens of stocks hitting their upper limits every day, the stock he had chosen had resulted in a loss, making it seem as if a spell had been cast.

What frustrated him even more was the overall market trend. By the end of March, the stock market had seen a historic rise, with the composite index breaking the 400-point mark to reach 405.13. While he had incurred a loss, most other people had made money from stocks.

Even in gambling, beginners often have good luck, but it seemed that such luck did not exist in the stock market.

That night, Yuseojun pulled his hair in frustration. The stock market was not a place where he, who knew nothing, could boldly jump in and make money.

"Ugh, I'm just a negative hand."

He let out a groan without realizing it. While there was a Midas touch that turned everything to gold in ancient Greece, he felt he had a negative touch that made stock prices fall.

"Is something not going well?"

His roommate, Goo Inhyuk, who had been watching him closely, spoke up.

Goo Inhyuk, with a smile, glanced at the scribbled notes of stock indices and prices.

"You said you were going to start trading stocks a few days ago. How's it going?"

Yuseojun shook his head with a defeated look.

"It's not as easy as I thought. I completely failed. Are you interested?"

"Haha, you failed! I told you it would. I'm not interested. I don't have any money."

Knowing that Goo Inhyuk had no ill will, Yuseojun just smiled.

Yuseojun showed him the stock price list in the newspaper.

"Other stocks are doing well, but why is the one I picked like this?"

"What did you pick?"

"Hyundai Motor."

Goo Inhyuk scanned the newspaper for a while before finally finding the price of Hyundai Motor.

"Hmm, Hyundai Motor started exporting the Excel car to the U.S. in February, right? It was hailed as a new era of exports in our country's history. But the stock price is falling?"

"I bought it thinking it would do well, but it's different from what I expected."

"Stocks are difficult, it seems. It's because you touched it. You've been cursed."

"Ah, damn."

The two exchanged various opinions about Hyundai Motor and stocks. However, Goo Inhyuk was essentially a novice in stocks, and Yuseojun didn't know much either, so their conversation wasn't very helpful.

Goo Inhyuk patted Yuseojun's shoulder and shook his head.

"Come on, the midterms are coming up. Don't ruin your chances by worrying about this. Focus on your studies. I'm a genius, so I can get by with minimal effort."

To Yuseojun, Goo Inhyuk's pride in being a genius was quite significant. In fact, Goo Inhyuk was definitely a genius, albeit a strange one.

Yuseojun sighed and replied.

"I guess so. But what if the stock price skyrockets while I'm studying for the midterms? It rose a lot this March."

When stock prices are rising, it feels like they will keep rising indefinitely. The anxiety of missing out on potential profits makes you restless. Although a bit of rational thinking would show that this isn't the case, his heart didn't agree. Opening a securities account makes you feel like you're about to become rich, and buying even one share gives you the feeling that it will skyrocket.

"Then just buy something and close your eyes. From what I see, it might be better for you to hold onto it without trading."

Goo Inhyuk's half-mocking advice was tempting.

On second thought, it was a good idea. It seemed like a way to get through the exam period with a bit more peace of mind.

"Alright. I'll close my eyes, pick something, and check after the exams."

It was the best way to eliminate his anxiety. Of course, he would check the stock prices once a day through the newspaper, but it wouldn't interfere much with his studies.

He opened the newspaper again and scanned the stock price list. Most of the stocks were unfamiliar, but he had heard of some of the companies. Honestly, he couldn't see anything else. All he saw were the upward arrows on the price list, indicating the upper limits. Of course, there were also downward arrows, but he didn't notice them. He only saw the rising ones. Everyone must feel the same way.

Goo Inhyuk smiled slyly and said,

"Seojun, how about we make a bet? We each pick a stock and see who's up more. A 500cc beer, how about it?"

"Deal!"

Yuseojun immediately agreed.

"Even if you're a science student, I should be better, right?"

"Who's the one who lost money right after buying?"

"Didn't you know that one failure can be a lesson?"

"Have you heard about the monkey and the fund manager's stock bet where the monkey won?"

It's said that no one knows how stock prices will move. A few years ago, in the U.S., a fund manager and a monkey each picked ten stocks, and after a year, the monkey's picks outperformed the fund manager's. This joke illustrates how unpredictable stock movements can be.

The two, now interested in the bet, started looking for suitable companies.

Yuseojun, having learned from his previous failure that famous companies' stocks don't necessarily rise, clenched his fist and shouted,

"Right, I need to find a well-performing company in my surroundings. That's the answer. Not a famous company like last time, but a small and strong one!"

With eagle eyes, he scanned the company names, and one familiar name caught his eye: Crown Confectionery. He had eaten a snack from this company that afternoon.

According to his research, Crown Confectionery's stock price at the end of March was 2200 won. If he invested half of his money, he could buy about 50 shares.

"I've chosen mine. You pick yours."

Goo Inhyuk, with a nonchalant expression, stretched his hand over the newspaper and picked a stock randomly, like a monkey.

The company he pointed to was Sungchang Enterprise.

Yuseojun asked, puzzled,

"Do you know what Sungchang Enterprise does?"

"How would I know?"

"Why did you choose it?"

"The monkey won, remember? I just picked something randomly. Haha."

Yuseojun pouted, not liking the idea.

"It's a bet for a beer. You should be more careful."

"Of course, I know. Don't worry."

Seeing Goo Inhyuk's confident expression, Yuseojun was completely baffled.

Thus, the two stocks were chosen. Crown Confectionery's stock price was 2200 won, so he would buy 50 shares. Sungchang Enterprise's stock price was 899 won, so he would buy 100 shares. The buying point would be the market close on the next day, April 1st, and the selling point would be the closing price on the last day of April. Crown Confectionery is a well-known confectionery company, while Sungchang Enterprise produces plywood by processing wood, and is relatively unknown to the general public.

Thus, the two men's decisive battle was set.

The next day, at the market opening, Crown Confectionery was bought at 2210 won for 50 shares, and Sungchang Enterprise was bought at 869 won for 100 shares.