5 Things to Know Before You Start Investing

Investing starts with understanding the “structure” before picking a stock. Here are five things worth knowing before your first buy.

1. Trading has costs

Brokerage fees apply on both buy and sell, and a transaction tax (about 0.18% in Korea) applies when you sell. So your break-even isn’t the purchase price — it’s the price that also covers your costs.

2. Taxes differ by market

For overseas stocks (Korea rules), a 22% capital-gains tax applies to annual realized gains above 2.5M KRW, and dividends are taxed at 15.4%. Think in terms of what’s left after tax.

3. Don’t pile into one stock

The more conviction you have, the easier it is to oversize a position. But to keep one wrong call from shaking your whole account, deciding the weight of any single stock or trade in advance is how you survive long term.

4. Write down why you buy and why you’d sell

If you note both “why I’m buying” and “what would make me sell” at purchase, you can judge by your record — not your emotions — when the market falls.

5. Calculate with tools, not gut feel

Break-even price, after-tax return, and the right buy amount are better checked with a calculator than estimated in your head. Once it’s a habit, mistakes drop.