See Others Flaunting Profits While You End Up a Loser? Experts Reveal Stock Market Secrets to Avoid Costly Mistakes

Taiwan's stock market has been highly volatile recently. After a strong surge of 775 points yesterday, today (the 8th) saw the weighted index lose momentum, closing down 220 points—though it managed to hold above the 47,000-point mark.

In response, financial writer Di Xiang stressed that investors must understand the concept of a 'margin of safety' to benefit from such market fluctuations. Without it, they risk falling into the trap of buying high and selling low, or making small gains while suffering large losses.

Di Xiang noted on Facebook that Taiwan's stock market has seen significant swings lately—rebounding thousands of points, only to pull back by over a thousand. Many investors have been scared out of the market, while others see these swings as golden opportunities.

He acknowledged that bullish and bearish views are normal, but to truly profit from volatility, investors need the mindset of a 'margin of safety.' Without proper understanding of market mechanics and disciplined thinking, investors will inevitably chase highs, sell at lows, and end up with minor profits and major losses.

FOMO Investing? The Stock Market Is Like Starting a Business

Di Xiang pointed out that some investors, seeing others post huge gains on social media, assume the stock market is easy money and jump in—only to get wiped out by AI-related 'ghost stories,' U.S.-Iran tensions, or Trump-induced chaos. When volatility spikes, they're forced to exit at a loss. Some even wonder: 'I bought solid companies and quality assets—why did they drop so much in the short term?'

Di Xiang bluntly compared stock investing to entrepreneurship. Many dream of being their own boss, seeing a successful restaurant and thinking, 'I can do that too.' Some open shops with zero experience; others apprentice first. Yet in most cases, both struggle to attract customers and eventually close shop.

The reason is simple: lacking skills is fatal, but skills alone aren't enough. Behind every thriving business is unseen effort—relentless outreach, countless rejections, and long-term perseverance.

Success Hides Years of Effort

Di Xiang shared stories from veteran entrepreneurs: starting with no customers, knocking on doors with products in hand, facing endless rejections, slowly winning trust, turning first-time buyers into regulars, and eventually getting referrals.

Once stable, the real work begins: cost control, staffing, and adapting strategies to market changes—only then can a business survive long-term.

Likewise, those flashy profit screenshots on social media are like seeing a successful entrepreneur from the outside. Behind them lie years—even decades—of trading experience, vast knowledge, and unwavering discipline. (Assuming no photo editing.) The key takeaway: others' success isn't easy to replicate.

'Buy the Dip' Isn't Enough

Some may argue that 'margin of safety' just means 'buy when it drops.' That's not wrong, Di Xiang said—but the real question is: how low is low enough to buy safely?

And how should you buy to participate in the rally with low risk? Ultimately, whether in stocks, careers, or business, there are always hidden rules to sustained profitability. Instead of wandering aimlessly, listening to seasoned veterans could help you avoid many costly detours.