Selling at 20% Profit Is Why You Never Build Wealth: 3 Iron Rules of Compounding to Multiply Your Gains
When a stock goes up 20%, you press sell immediately — and then you miss the next 40% to 60% of the move. This article breaks down the three most fatal rules Taiwan retail investors ignore (the compounding time axis, the real meaning of profit-taking, and asset allocation) using a side-by-side 10-year comparison of a NT$300,000 position held with annual 20% profit-taking versus held untouched. You will see the true cost of constant trading. Also included: four operational iron rules, blind spots in labor pension allocation, and a dividend tax calculator. Taiwan's TWSE historical data and academic research show the average retail investor's annualized return persistently lags the broad market, and most are even in the red — the reason is not bad stock picking, it is the constant trading-in, trading-out, and the act of cutting the compounding time axis yourself.