From Retail Investors to Winners: Unveiling the "Chopping Chives" Trap, 6 Strategies for a Comeback from the Brink

Why Do You Always Lose Money?

“Got cut again.” This phrase is like a curse in the investment circle. Every time the market reverses, someone in the community complains about being harvested by the big players. But have you ever thought about why some people make money while others lose? The problem isn’t luck; it’s the way you play the game.

Retail investors, known as “Brother Chives,” are like real chives—cut again and again, yet still waiting for the next growth. This is not a curse but the reality of market operation.

How Does Cutting Chives Happen?

Chives are vegetables, but they have become a synonym in the investment world. The reason is simple: they grow quickly, are highly resilient, and will regrow after being cut. Retail investors are like these chives—when funds are lost, new retail investors enter; when new investors lose money, even newer ones keep coming in. Cycle after cycle, endlessly.

In the late bull market and early bear market, big players (large investors and institutions) leverage their information advantage to sell at high points and create false rebounds at low points to attract retail investors to buy in. And retail investors? They get harvested amid emotional swings.

Retail investors usually have these four characteristics:

1. Blind Following — Buying whatever others buy, without any research
2. Lack of Awareness — Having no understanding of market operations and fundamentals
3. Greed Without Limits — Wanting to make more when making money, unwilling to cut losses when losing
4. Buying High and Selling Low — Buying at peaks, selling in panic, always stepping on the rhythm backwards

6 Tips to Avoid Becoming Chives

Tip 1: Understand your investment tools, choose the right battlefield

Different investment methods carry different risks and returns. Traditional stocks are volatile but have low barriers; funds are less risky but offer moderate returns; forex and CFDs provide 24-hour trading and two-way profit mechanisms. The key is to first clarify what game you’re playing, then decide how much to bet.

Tip 2: Choose legitimate platforms to reduce hidden costs

Selecting the right trading platform is crucial. Look for platforms with proper regulatory approval, transparent transaction costs, and good reputation. Don’t jump into shady platforms just for a little extra rebate—losing money with no one to hold accountable is not worth it.

Tip 3: Build your own methodology and develop a strong mindset

Listen to the majority, consider the minority’s opinions, but make your own decisions. No one can predict market trends. Many retail investors blindly trust so-called “expert analysis,” only to fall into traps.

True investors need two things: knowledge and mindset. Knowledge helps you avoid pitfalls; mindset keeps you from being driven by market emotions. Buffett said it well: “When others are greedy, I am fearful; when others are fearful, I am greedy.” Buy during bear markets, sell decisively during bull markets.

Tip 4: Know when to take profits and cut losses, secure your gains

Set take-profit and stop-loss levels—not out of greed or resignation, but as basic skills of a mature investor. For example, set a 30% take-profit level and exit once achieved. Similarly, when losses reach a predetermined percentage, cut losses decisively. Preserving capital is the biggest victory. Most legitimate trading platforms now have built-in stop-loss features; not using them is asking for trouble.

Tip 5: Diversify investments, don’t put all eggs in one basket

Going all-in at once is typical retail behavior. Diversification can reduce risk. Also, learn to do both short and long positions; even in a declining market, there are opportunities to profit.

Tip 6: Keep up with market information in real-time and adjust positions flexibly

Technical analysis is easier to learn, but fundamentals are often overlooked. Markets are constantly changing; a slight oversight can turn profits into losses. Timely access to first-hand market information, combined with technical analysis, allows you to grasp opportunities effectively.

Use news websites, financial apps, and trading platform tools (such as economic calendars, real-time news, sentiment indices) to quickly filter the most relevant market information.

Final Words

There is no instant success in investing. To evolve from “Brother Chives” to a winner, you need knowledge accumulation, experience summary, and mindset cultivation. Even if you’ve been cut before, approach it as a learning opportunity—review every losing trade to avoid repeating the same mistakes.

Remember: The market is always testing your rationality. Being a clear-headed investor is always more worthwhile than being a lucky gambler.