These days, there are really more and more people who want to start studying stocks. But most people begin with the preconceived idea that “stocks are gambling,” and honestly, that’s the wrong way to think. If you have knowledge and strategies and approach it properly, it can become a powerful tool to significantly grow your assets.

When you ask what stocks are, simply put, they are securities that represent ownership in a company. When you buy stocks, you own part of that company, and if the company does well, you can earn money through dividends and capital gains. If you own one share of Samsung Electronics, you can think of it as owning a very small portion of the company’s total ownership.

However, if you start studying stocks without doing it properly and just jump in at random, it’s risky. From what I’ve seen, many people don’t realize how much the stock price can change in a short period of time. For example, during the COVID-19 pandemic in March 2020, the S&P 500 index fell by about 34% in just one month. It’s also psychologically burdensome.

But the story is different in the long run. Since 1957, the S&P 500 index has recorded an average annual return of about 10%. This means you can earn returns that surpass inflation over time. That’s the core of stock study and investing—approaching with a long-term mindset without being shaken by short-term volatility.

There are also various ways to trade. You can buy and sell individual stocks directly, or you can diversify by investing across multiple stocks, such as through ETFs or funds. For beginners, ETFs are effective for reducing risk. Popular approaches these days—like fractional trading or systematic investing—are also good options. If you invest a fixed amount automatically every month, you can support long-term asset growth.

Opening an account is simpler than you might think. These days, you can finish it in just a few minutes using a smartphone app. You only need an ID, and since each brokerage firm provides an app, you can download it from the company you choose. There are several types of accounts: a standard brokerage account allows trading stocks both in Korea and overseas; ISA is advantageous for long-term investing because it offers tax benefits; and CMA lets you manage short-term funds while earning interest on deposits.

One tip when opening an account is to be sure to compare fees. Fees differ by brokerage firm. People tend to stick with the place they choose first, so it’s better to start with a cheaper one from the beginning. The Korea Financial Investment Association provides a service where you can compare fees, so you can refer to that.

When choosing stocks, you need to know two things: technical analysis and fundamental analysis. Technical analysis is a method that predicts the future based on past price movements and trading volume, using indicators like moving averages and MACD. Fundamental analysis means analyzing a company’s financial statements or management performance to judge its true value—using indicators like PER, PBR, and ROE. When studying stocks, it’s important to understand both.

There are also two major investment strategies. Short-term speculation aims for quick profits, and while the gains can be large, losses can be large too. Day trading is a representative example, and it can involve a lot of trading costs. On the other hand, long-term investing is when you hold for at least 5 years. Warren Buffett is a well-known value investor. This approach has the advantage that, thanks to compound interest, returns can increase significantly as time passes.

Risk management is also important. Diversification is the foundation. Don’t focus on just one company—if you hold stocks of multiple companies at the same time, you can reduce the risk of a decline tied to a specific stock or sector. Setting stop-loss orders is also essential, and periodically rebalancing your portfolio helps as well. It’s also fine to invest in installments—don’t invest all your funds at once; instead, invest in multiple rounds and divide it over time.

Finally, here are a few tips. Start with a small amount at first so you can build experience. Don’t get swept up in hype like “theme stocks” or “stocks that surge right after listing”—analyze objectively. It’s also good to develop a habit of reading economic news for 30 minutes a day and checking the stocks you’re interested in. And if you record the reason for your investment and the results after each trade, you can analyze your own patterns. Stock study isn’t a one-time effort—it’s an ongoing process. If you move forward steadily while doing thorough analysis and managing risk, you’ll be able to achieve your goal of long-term asset growth.