Financial commentator Ruan Mu-hua: Selling low to buy high is key

Financial commentator Ruan Mu-hua shared his personal investment strategy, which involves strategically reducing stock positions with the intention of reinvesting later. He explained his approach on Facebook, stating, "Reducing holdings is for the purpose of increasing them again, and again, and again."

Ruan detailed that his decision to reduce his holdings in late May and again in June was met with skepticism from some peers, who accused him of "selling too early." However, he asserts that his actions were aimed at better managing liquidity, a skill he considers more crucial than stock picking, particularly in challenging market environments. "When the market is good, even throwing darts might yield profits; it's when the market is bad that true tests occur," he remarked.

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Reducing holdings is for the purpose of increasing them again, and again, and again.

He revealed that one of his investment accounts saw an injection of over 10 million New Taiwan dollars between July 16 and July 21. Ruan clarified that these funds were precisely from the positions he had previously reduced. This strategy underscores his belief in the importance of having "money as bullets" ready for opportune moments, emphasizing that maintaining a fully invested portfolio during downturns would prevent such strategic reinvestment.

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When the market is good, even throwing darts might yield profits; it's when the market is bad that true tests occur.