Lessons from the Young Stock Guru: From Doubling Capital to Losing 24 Million in Three Days

Reflecting on the tumultuous April in Taiwan's stock market, following President Trump's announcement of equivalent tariffs, the Taiwan Weighted Index plummeted nearly 20% within a mere three trading days. This led to the emergence of confessions from so-called 'young stock gurus' online, with one article titled 'Graduated: I’m just a pig riding the wind,' which attracted significant discussion given its attached account details.
This young stock guru had leveraged his funds heavily on electric vehicle and power-related stocks, initially reaping substantial profits and believing his strategy was 'guaranteed to make money.' However, only a few days after the Qingming Festival on April 7, he faced losses of 24 million. He wrote, 'I truly have no money left, not even a chance to start over.'
Subsequently, several investment experts offered advice based on his experiences, emphasizing the critical importance of risk management for all investors. This 'graduation letter' chronicles the highs and lows of this young stock guru, prompting deep reflections.
In the article, he shares his stock market journey and lessons learned, including the need for reducing leverage at high points, mindset when facing market fluctuations, and the importance of liquidity, all crucial reminders for many investors.