91% of Taiwan Retail Investors Lose Money! The 5 Deadly Sins—The 3rd Is the Most Fatal
According to TWSE statistics, the proportion of Taiwan retail investors with consistent long-term profits is below 10%; over 90% lose money in the market. You open your Taiwan stock app, see the numbers dropping again, and your finger hovers over the screen unsure whether to cut losses—is this a scene you live through every day? This article breaks down 5 deadly sins for Taiwan retail investors: chasing rallies and selling on dips, over-concentration, no stop-loss (disposition effect), ignoring trading costs and taxes, and no investment plan. The 3rd sin is the most fatal: the disposition effect causes you to sell winners too early and stop losses on losers too late. Using NT$1M as a sample: even at half-price commissions, monthly turnover can eat 7–8% of return per year in trading costs alone, plus a 0.5% difference in ETF management fee can mean a six-figure gap over 20 years of compounding. Includes 4 iron rules, 4 action steps, and differentiated strategies for different groups.