Investors Who Stopped Loss Last Week Are Now Crying! Taiwan Stock Market Surges with 'Historic Highest Point Gain' – Expert: Market May Have Bottomed and Could Gradually Rise

Taiwan's stock market has experienced intense volatility recently. After last week's massive selloff frightened many investors into stop-loss positions, the market opened strong and rallied sharply today (21st). The TAIEX closed up 1,783 points at 44,232, setting a new record for the largest closing point gain in history.

In response, financial writer Di Xiang stated that he viewed the prior week's decline as a deleveraging phase and positioned himself on the buy side. He noted that the current rebound was fueled by the extreme bearish sentiment from last week. However, he emphasized that in such volatile conditions, "whether one is bullish or bearish is not the most important thing"—risk management is paramount.

Di Xiang posted on Facebook that when the market dropped 2,000 points two days prior, falling back to the 42,000 level, he publicly stated, "In a deleveraging market, I will start taking a long position." At the time, market sentiment was extremely pessimistic, with many investor friends adopting a deeply bearish outlook and even doubting his strategy of buying on dips.

He pointed out that it is precisely this wave of pessimism and bearishness that has now created a strong rebound. Notably, many investors now regret stopping losses last Friday. However, Di Xiang stressed that in extreme market conditions, the most crucial factor is not market bias but managing one’s exposure and risk to remain safely in the market.

He clarified that his decision to increase positions last week was not blind bullishness. Rather, he judged that short-term downside risks were diminishing, prompting him to gradually accumulate long positions in stages.

Regarding whether this rally is a "dead cat bounce" or the beginning of a V-shaped recovery, Di Xiang subjectively believes that after the deleveraging phase, the market has a good chance of forming a bottom and gradually moving higher. However, he admitted honestly that no one truly knows how the market will unfold. His consistent strategy has been to wait for a safe entry point—ensuring he can advance or retreat as needed—and then let the market take its course. "Adaptation is more important than prediction," he said, calling this another vital lesson taught by the market.

Di Xiang emphasized that sharp market swings occurring every few months are part of normal market development. In such turbulent times, with numerous external factors and noise clouding judgment, the key is to understand one’s "panic SOP"—how to respond during crises. Instead of predicting price movements, investors should focus on managing extreme scenarios to remain resilient. Surviving volatility positions one to capture future favorable trends.

Additional exclusive reports from Feng Media include: "Taiwan retail investors are panicking and rapidly deleveraging—faster than the Trump tariffs"; Bloomberg noted that the Taiwan stock market has entered a technical correction phase.