Zhang Junning's Stock Loss Scandal: The Three Major Pitfalls Every Taiwan Stock Investor Must Know

In April 2025, an entertainment news story ignited heated discussion in the stock market community. Taiwan’s well-known actress Zhang Junning suffered a severe blow from a stock investment, losing NT$39 million in an instant. This event not only drew public attention but also profoundly revealed the risk nature of investing in Taiwan stocks. When Zhang’s management company issued a statement saying “Investment is a personal matter,” it was essentially an acknowledgment of the reality of her investment loss. So, what exactly happened to this highly educated star, dubbed the “Female Stock Goddess,” in Taiwan’s stock market? What lessons does her story offer to ordinary investors?

Retail Investors Chasing Highs and Getting Trapped: Decoding Zhang Junning’s Case

Zhang Junning’s investment story began with a bold decision last year. She bought a stock heavily at NT$105 per share, investing a total of NT$60.16 million. When the stock price rose to NT$633 in March, her paper profit once reached over NT$1 billion, and the market even called her the “Female Stock Goddess.” However, markets are always unpredictable. On April 1, a limit-down day, part of her holdings suffered significant losses, totaling NT$39 million.

From “Female Stock Goddess” to “Chopped Chives,” her stock investment turnaround took just four weeks. What is the core issue behind this? The answer is simple—greed without taking profits. When profits exceed 90%, investors often fall into a deadly psychological trap: wanting to wait for even higher prices. The result is usually a price correction, turning profits from paradise into hell.

Experienced traders point out that Zhang Junning’s huge loss was not due to wrong trading direction but two fatal mistakes: first, “All-in on a single stock,” putting all funds into one stock; second, “Greed and no profit-taking,” holding on even after reaching expected gains.

Structural Characteristics of Taiwan Stocks: Why Even Experts Can Fail

To understand why Zhang Junning experienced such volatility, we must first recognize Taiwan’s stock market’s unique features.

Taiwan’s stock market is structurally highly volatile. Foreign investors hold about 40% of the total market value, and their buying and selling decisions directly influence the overall trend. When international funds reassess risks, sudden withdrawals by foreign investors can cause collective shocks to the Taiwan market. Especially in a market dominated by tech stocks, such volatility is amplified.

TSMC (Taiwan Semiconductor Manufacturing Company) is the market’s stabilizer but also a risk concentration point. Its weight exceeds 30%, meaning any movement in TSMC affects the entire index. When U.S. tech stocks face adjustments, Taiwan’s semiconductor stocks often lead the decline. Leading tech stocks like MediaTek, Hon Hai, and UMC are highly correlated with TSMC’s performance, and Zhang Junning likely invested in such stocks.

More importantly, retail investors account for over 60% of trading volume. This means emotional trading, herd mentality, panic selling, and other psychological phenomena occur frequently. When market sentiment shifts, retail investors are usually the last to run and the hardest hit.

Imbalance Between Technical and Fundamental Analysis: Trading Discipline Ignored by Zhang Junning

Many investors make a common mistake: they are overly optimistic about rising markets, completely ignoring fundamental changes and technical warning signals.

From a technical perspective, the stock price surged from NT$105 to NT$633, a 502% increase. Such extreme gains often signal accumulated risks. Patterns like “Head and Shoulders,” divergence in moving averages, overbought signals in MACD and KD indicators should serve as caution. Volume changes are also critical—if the price rises but volume shrinks, it usually indicates waning buying interest, and a correction is imminent.

Fundamentally, investors should consider whether EPS (Earnings Per Share) has truly increased fivefold or if the valuation bubble is driven solely by market sentiment. A P/E ratio of 15–30 times is generally reasonable for tech stocks; exceeding this range warrants caution. Are revenue growth rates sustainable enough to support such high stock prices? These are questions Zhang Junning likely did not deeply consider.

Capital Management and Risk Control: The True Keys to Investing

The NT$39 million loss suffered by Zhang Junning offers the most valuable lesson: the importance of capital management.

First principle: Diversify investments. Avoid all-in on a single stock. A reasonable allocation might be: 50% in blue-chip stocks like TSMC and Hon Hai for stability, 30% in growth tech stocks like MediaTek and UMC, and 20% in cash to handle market volatility. This way, even if one stock drops 50%, the overall account only suffers a 15% loss.

Second principle: Strict stop-loss discipline. Set a stop-loss at around 7–10% loss, rather than waiting until 50% loss and regretting. Stop-loss is not admitting defeat but protecting capital. Similarly, take profits systematically—at 20%, 40%, 60% gains—by selling in parts rather than waiting for the peak.

Third principle: Avoid high-frequency trading. Although Taiwan offers tax advantages for day trading, transaction costs, taxes, and psychological costs are high. Most retail traders lose money in high-frequency trading rather than profit.

Fourth principle: Maintain a holding mindset. Regularly review whether a stock still aligns with your investment logic. If fundamentals deteriorate or technical support breaks, exit unconditionally rather than fooling yourself into believing in a rebound.

Practical Lessons from Zhang Junning’s Stock Incident

The huge stir caused by Zhang Junning’s loss highlights common misconceptions in Taiwan stock investing. Many investors, even highly educated professionals, lose their way amid greed and fear in the market.

The difference between successful and unsuccessful investors often lies not in stock picking ability but in risk management discipline. Her story reminds us: the stock market is not a casino but a place that requires discipline, patience, and humility. Those who profit long-term in Taiwan stocks are usually those who can control their emotions and strictly follow their trading plans.

Next time you see a stock soaring, remember Zhang Junning’s story. Ask yourself three questions: What proportion of my assets is in this stock? Do I have a profit-taking plan? Does the fundamental support this price? Only if all answers are “yes” should you hold. The risks in Taiwan stocks are the same for everyone.