Taiwan's stock market experienced intense volatility in July, with the final week seeing two sharp declines and a brief breach of the 40,000-point mark. However, the last trading day closed with a surge of nearly 3,200 points, leaving investors on a rollercoaster ride. Heavyweight stocks such as TSMC, Hon Hai, and memory-related stocks became focal points for market bulls and bears and capital flows.

As many investors fell into panic, financial expert Juan Mu-Hua recently appeared on the program 'How Bao-Jie Sees It' to share his long-standing market operation principles. He pointed out, 'Extreme market volatility can actually be anticipated.' Juan noted that the first half of the year saw a strong bullish trend, with the main index reaching over 48,000 points in June, leading many investors to suffer from 'fear of missing out' (FOMO). However, for more experienced market participants, excessive FOMO is a warning sign. 'Because counter-market movements always emerge,' he said.

Juan revealed he first reduced his positions at the end of May and again in late June, anticipating that the third quarter would bring high-level consolidation or even a downturn. While he does not believe the Taiwan stock market will enter a bear market, he emphasized, 'If you don’t lock in profits and turn them into real cash, they remain only on paper.'

Juan stressed that many people misunderstand the relationship between money and wealth. Wealth refers to assets like real estate and stocks (stock), while money is liquid (flow). Therefore, investors must timely convert stock into flow. 'Once you have flow, you can then rebuild your stock,' he explained. For him, 'counter-market sentiment' is a key indicator—when the market is overly FOMO-driven, it’s time to 'put money into your pocket.'

He disclosed that his total paper gains plus realized profits this year amount to approximately NT$50 million, with realized profits alone reaching NT$20.56 million. 'My profits in the first half of this year have already exceeded the total of the past two years combined.'

Given such strong performance, Juan emphasized the importance of securing profits. He reiterated that he does not foresee a bear market but believes the AI-driven bull market will continue. 'However, there must be a point where you take profits and preserve gains,' which has been his consistent strategy. He has already transferred part of his realized profits into a regular fund investment account—a 'long-term wealth growth track'—which will operate without stopping profit-taking or deductions. This way, money earned from active stock trading is moved into a 'passive engine,' ensuring capital is never idle.

More exclusive reports from Feng Media: · Taiwan stocks rebound after Monday’s dip—has panic peaked? Hsieh Jin-He names two key stocks for August: a man’s stock loss leads to family tragedy · When will Taiwan’s new stock penalty system take effect? A warning with real-life 'jail' examples: even under the old system, ordinary investors suffered · More surprises for Taiwan stocks on Monday? After a 3,100-point surge, has the bottom been reached? Economists share investment rules: solid profit opportunities remain

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  • Source: PR Times
  • Category: News