Recently, I’ve seen many beginners get trapped in investment communities, which made me realize that many people don’t even know they’ve already become “stock chives.” It’s a bit painful to say, but this is indeed the most common phenomenon in the market.

First, let’s talk about why the term “chives” is used. Chives are a vegetable that grows quickly and has strong vitality; after being harvested once, they can grow back again and again. The financial world borrows this metaphor to describe retail investors who frequently suffer losses in trading but keep entering the market repeatedly. After one wave of being “harvested,” new investors step in, creating a cycle. Especially in Taiwan’s stock market scene, this “stock chive spirit” is now often self-deprecatingly joked about.

Have you noticed any of these traits in yourself? For example, following others’ profits to buy in without your own judgment. Or selling immediately when the price drops after buying, only to regret it when it rises again. Another painfully common situation is you buy, and it falls; you sell, and it rises—that’s a typical case of being manipulated by market sentiment.

There are countless ways to “harvest” chives in the market. The most classic is “pumping and dumping”: the market maker quietly accumulates shares at low prices, then manipulates the stock price through buying and selling, while heavily promoting positive news on social media. Retail investors, afraid of missing out (FOMO), impulsively buy in. Once the market maker has transferred the chips, they quickly offload, leaving retail investors holding the bag. There’s also an even more outrageous method called “pig slaughtering,” where scammers pose as authoritative mentors, post fake profit screenshots, and lure retail investors to invest, then run away with the money.

I’ve noticed that many stock chives share a common trait: they lack rational thinking and their own investment methodology. They blindly trust so-called experts’ analyses without verifying whether these claims are reasonable. I agree with Warren Buffett’s famous saying: “Be fearful when others are greedy, and greedy when others are fearful.” But most retail investors are the opposite.

To avoid becoming stock chives, the first step is to develop your own investment methodology. Listen more, think more, observe more, and finally make your own decisions. At the same time, maintain a strong mindset, not swayed by market emotions. The second step is to learn to set take-profit and stop-loss points. Many people want to make more money when they’re winning, but refuse to accept losses, which results in bigger losses. You can set a 30% take-profit target; when you reach it, exit decisively. Similarly, if losses reach a certain percentage, be willing to cut your losses.

The third step is diversification—don’t put all your eggs in one basket. Also, learn to trade both long and short positions, so you can seize opportunities even when the market declines. The fourth step is crucial: timely access to market information, combining technical and fundamental analysis. Many retail investors only focus on technicals and ignore fundamentals, risking missing major news. The fifth step is to choose legitimate and compliant trading platforms. Never trust advice from unknown mentors or unregulated platforms; invest your money only in regulated platforms.

Honestly, to truly avoid being harvested as a chive, continuous learning and practice are essential. If you’ve already experienced losses, the most important thing is to reset your mindset, review your trades, and identify your mistakes. There are no shortcuts in investing, but mastering these methods can significantly reduce the risk of being “harvested.”