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Taiwan stocks surged after the Dragon Boat Festival break, with the TAIEX moving above 47,000 in early trading as TSMC, UMC, AI server names, and semiconductor supply chains led the move.
You'd check the CPU, read PTT reviews, and compare specs before buying a laptop—but for hundreds of thousands in stocks, you rely on a friend's casual remark? This article breaks down three numbers—ROE, P/E ratio, and free cash flow—and pairs them with Buffett's core principle of "don't lose money," helping you eliminate the deadliest landmines in three minutes. From the math shock of how a 50% drop requires a 100% gain just to break even, to the real lessons of the 2020 pandemic crash, rediscover the picky self you were when buying that laptop and save 99% of your capital.
TSMC climbs to NT$1,000 and you don't dare buy — it's too expensive; it drops to NT$800 and you still don't dare buy — it might fall further; when it returns to NT$100 you finally chase in, then it drops again. This isn't your problem — it's your brain's problem. This article dissects the five most common psychological traps in investing — from the fundamental mismatch of "price vs. value" to how "earning by luck" triggers confirmation bias and drags you into the abyss. Seeing these traps won't make you rich overnight, but it will keep you from making costly mistakes.