How to Avoid Stock Crashes: Analyzing Risks of Hot Stocks and Benefits of Long-Term Investment

Taiwan's stock market rose from 15,000 at the beginning of 2021 to over 24,000 last year. However, in April 2024, U.S. President Trump sparked a 'tariff storm,' causing global stock markets to turn volatile, with Taiwan stocks dipping down to 17,000. A 26-year-old 'boy stock god' confessed on Facebook, revealing his nine-figure fortune vanished overnight. Investment expert 'Market Old Bull' noted that this young investor faced significant losses due to high leverage and concentrated holdings, overly pursuing short-term profits.
He suggested using ETF0050 as an example; investing a regular amount of 12,000 NTD monthly could yield a million-dollar asset in 20 years. He emphasized, "True wealth is not obtained overnight but is the result of consistent effort day by day."
Additionally, high-leverage trading is compared to driving a racing car at high speed around a bend, where even a small pebble can lead to disaster. Young investors focusing on popular stocks could struggle to escape market downturns. Notably, individuals heavily invested in hot stocks like Boryung, Huaxingguang, and HeYi faced substantial losses following Trump's tariff announcements. Therefore, Market Old Bull encourages investors to return to fundamentals and adopt a long-term stable investment strategy to safeguard wealth accumulation.