Recent Market Turmoil Due to Trump Tariffs
Recently, numerous investors in the stock market have been sent out of the arena due to Trump’s tariffs, prompting a post titled “Graduation Essay” on PTT’s stock board, evoking sympathy for the writer.
(Background: The Financial Supervisory Commission certified that the “young stock god” did not incur losses. Peng Jinlong stated that there is no bear market crisis in Taiwan’s stock market, and most liquidations involve individuals over 40 years old.)
(Context: The unexpected “limit down” in Taiwan’s stock market sparked heated discussions among foreign netizens: Can it still be played this way? What is the difference from the circuit breaker in the U.S. stock market?)
In the stock market, who can avoid cuts? However, losing years of compounded profits due to careless operations is truly heartbreaking. Yesterday (17th), a netizen posted a poignant “graduation essay” on Taiwan’s PTT forum, detailing his six-year journey in the stock market. He initially profited handsomely through leveraged trading but ultimately suffered painful liquidation due to excessive confidence in a high market, leading to losses amounting to NT$24 million.
He lamented in his post: “Trump slapped me hard,” highlighting the significant impact of external uncertainties on the market and the consequences of not being prepared despite a long-term trading approach.
Years of Strategy Capsized
The netizen, identified as kplayer9363, stated on PTT Stock Board that he was born in 1992 and began engaging with the stock market in 2019, experiencing ups and downs initially. By mid-2022, he developed a strategy that combined fundamental analysis, heavily investing in low-PE stocks, and using Stock Pledge to maximize capital. His operations began to flourish, successfully betting on stocks like Shidian, doubling his principal through pledges and accumulating considerable assets. This period instilled a strong confidence in his stock selection and leverage strategies, believing that stocks supported by EPS and future outlooks were “guaranteed profits.”
However, excessive confidence and negligence in risk management ultimately led to disaster. The netizen recounted that in mid-2024, he heavily reinvested in Qihong, whose stock price was already high, initially seeing around NT$3 million in unrealized profits. However, after the financing sell-off in August 2024, he misjudged the situation, interpreting it as a bottoming signal, and decided to fully leverage his financing, even borrowing an additional NT$6 million to invest more in Qihong, significantly increasing his overall leverage.
As he entered 2025, despite being optimistic about AI server development and Qihong’s revenue prospects, the market sentiment turned cautious. At the end of March, Qihong’s stock price experienced a gap down. Instead of reducing his position or stopping losses, he chose to double down, believing that the stock price would rebound quickly as in previous experiences, even betting on a high probability of market growth after the Qingming Festival.
Unexpectedly, the market turned swiftly and brutally. The netizen mentioned, “On April 3, 2025, the sudden drop in the Taiwan index futures and the subsequent plunge in U.S. stocks made me realize things were heading in the worst direction.” Following this, U.S. stocks also plummeted, drawing his attention to the deteriorating situation. On the critical date of April 7, the stocks he held, including Qihong, were locked down at limit down from the opening, remaining so for three consecutive days, leaving him with no opportunity to stop losses.
“On the day the limit down opened, I had already lost my rationality. After selling all my stocks at a loss, due to insufficient maintenance margin for my financing and pledges, I lost all my principal, loans, and the profits I had earned over the years.”
Due to the continuous decline in stock prices, his financing and pledge maintenance ratios fell rapidly, leading to a margin call from his brokerage. Despite attempting to sell at a loss after the limit down opened, it was already too late. Ultimately, with his maintenance ratio falling below the forced liquidation line, his holdings were forcibly liquidated by the brokerage. This operation wiped out all his years of profits, principal, and even the borrowed loans, with total estimated losses reaching NT$24 million, leaving him in debt.
Regret and Reflection
He expressed regret in his post: “I’ve fallen and cannot find a place to get up (damn, I’m out of money and in debt, the worst example).” He deeply reflected on the biggest reasons for this failure: “The slow reduction of leverage at high points,” “doubling down is fatal, especially at high points; doubling down with leverage at high points is most fatal.”
Trump’s Impact on Retail Investors
The netizen mentioned in the title and text that “Trump slapped me hard,” linking it to the gap down in stock prices at the end of March and “the significant downside of tariffs.” Indeed, in 2025, U.S. President Trump’s remarks and potential policy directions, especially the high tariffs imposed on China, delivered a heavy blow to the global supply chain.
The market fears that if Trump resumes trade restrictions or tariff barriers against specific countries or industries (including the electronics and AI supply chains highly related to Taiwan), this uncertainty could trigger capital flight from related stocks, leading to severe stock price fluctuations or corrections, becoming the last straw for high-leverage investors.
Every word from this netizen is filled with blood and tears. Many investors comforted him in the comments below, as he has personally demonstrated that even after achieving success in the market, losing respect for risk and over-leveraging at high points while clinging to a flawed “doubling down” strategy can instantly collapse all results when facing sudden systemic risks (such as changes in international political and economic situations). Risk management will always be the most crucial aspect of investing.
