Recently, I’ve seen many novice investors in the community being teased as "leeks." I’ve been thinking it might be helpful to clearly explain the meaning of "cutting leeks" and the underlying logic behind it, so at least everyone can avoid some pitfalls.

Speaking of the term "leek," it’s actually quite vivid. Leeks are a plant with extremely strong vitality; even after being cut, they can grow back, one batch after another, endlessly. In the investment circle, this metaphor is used to describe those retail investors who keep losing money. They’re like leeks—one wave gets cut, and a new wave enters the market again, cycle after cycle.

The meaning of "cutting leeks" essentially refers to the market manipulators or big players using various methods to drain retail investors’ money. Why are retail investors so easily "cut"? Mainly because of information asymmetry, lack of experience, and unstable psychology. Retail investors usually lack professional trading methodologies, are easily swayed by market sentiment, buy when others buy, sell in a panic when prices fall, and chasing highs or selling lows becomes routine.

There are many tactics for "cutting leeks" in the market. The most classic is pushing prices up to sell off. The big players quietly accumulate shares at low prices, then create a false sense of prosperity through self-buying and self-selling. Retail investors see the stock price rising sharply and fear missing out, so they impulsively buy in. Once the big players have transferred their holdings, they immediately dump their shares and run, leaving retail investors holding the bag. There are also scam tactics like "pig slaughter schemes," where scammers pose as "investment mentors," post fake profit screenshots to lure retail investors into unregulated small platforms, and then run off with the money. The crypto space has its own tricks, like air coins and double-dealing, all creating false illusions of prosperity.

So how can you tell if you’ve become a leek? I’ve summarized a few typical signs. First, blindly following the crowd to buy without your own judgment. Second, lacking basic investment knowledge and not understanding the market. Third, not knowing how to take profits or cut losses—being greedy when making money, unwilling to accept losses, which leads to bigger losses. Fourth, buying high and selling low, completely driven by market emotions.

To avoid becoming a leek, I suggest the following. First, develop your own investment methodology. Don’t blindly trust so-called expert analyses. Listen more, think more, observe more, and finally make your own decisions. Also, keep your mindset in check—remember Warren Buffett’s words: "Be fearful when others are greedy, be greedy when others are fearful." During bear markets, you can buy boldly; during bull markets, be cautious.

Second, learn to set stop-loss and take-profit points. Set clear levels for taking profits and cutting losses—when reaching your target profit, exit decisively; when losses hit a certain percentage, cut losses promptly. Many trading platforms have automatic stop-loss features—using them wisely can prevent many unnecessary losses.

Third, diversify your investments. Don’t put all your money into one asset; learn to spread risk. Also, consider both long and short positions, so you can find opportunities in different market conditions.

Fourth, stay updated with market information in a timely manner. Pay attention to both technical and fundamental analysis, especially major news. Missing a key piece of news can turn profits into losses. Many trading platforms now come with tools like economic calendars, real-time news, and live quotes, which can greatly improve efficiency.

Finally, and most importantly, choose legitimate and compliant investment platforms. Never trust advice from unknown "mentors" or unregulated platforms. Your capital safety is the foundation—without it, even the best investment strategies are useless.

In summary, to avoid being "cut," the key is to improve your investment literacy and develop rational trading habits. If you’ve already been "cut" once, it’s even more important to review and learn from the experience. There are no shortcuts in investing—only through continuous learning and practice can you truly understand what "cutting leeks" means and protect your principal.