'Leverage melts away': Office worker's semiconductor ETF losses draw flood of cut-your-losses advice

An office worker's brokerage account, deep in the red on leveraged semiconductor products, went viral online Tuesday after Samsung Electronics and SK hynix both tumbled sharply.

The account was posted on Blind, an anonymous workplace community app. The disclosed holdings showed a loss of about 2.67 million won ($1,750) on SK hynix shares, a return of negative 7.05 percent; a loss of about 3.64 million won on the KODEX Samsung Electronics Single-Stock Leverage ETF, a return of negative 26.07 percent; and a loss of about 6.59 million won on the KODEX SK hynix Single-Stock Leverage ETF, a return of negative 37.52 percent. The combined unrealized loss across the three positions came to 12.9 million won.

The user who posted the account, identified only as A, described himself as an investor who had held through losses for more than a decade without ever cutting a position.

"I've been in stocks for 10 years and never sold at a loss — just held on no matter what. But should I cut this time?" A wrote. "I'm feeling pretty down right now. Would appreciate any wisdom." He also conveyed the weight of the losses with the words, "This time feels real."

Major semiconductor stocks fell more than 6 percent across the board that day. According to Korea Exchange, Samsung Electronics closed at 296,000 won, down 6.92 percent from the previous session, while SK hynix ended at 2.201 million won, down 6.06 percent. Single-stock leverage ETFs tracking those two shares are designed to deliver twice the daily move of their underlying assets, meaning both products shed more than 12 percent in a single session.

Online commenters were blunt. "You thought you were skilled when leverage was making you money? Pay your tuition and move on," one wrote. "When volatility is high, leverage melts away. You should have gone in knowing that," said another. Others offered more measured advice: "Right now, while you're full of regret, is the fastest time to cut your losses" and "Think of it as the cost of a lesson."

Some took aim at the portfolio itself. "You bought Hynix, and then also bought a Hynix leverage ETF, and a Samsung Electronics leverage ETF — what kind of portfolio is that?" one commenter wrote.

Others urged A to hold, noting that "at least it's cash, not margin or credit" and that "blue-chip stocks do recover." Responding to comments, A wrote, "I'm tearing up — I'll cut the leverage positions after lunch." He later returned to post that he had sold, only to watch the stocks surge immediately afterward. "The moment I sell, it shoots up like crazy," he wrote, deflated.