I would be willing to come out for an interview, and the one thing I most want to say is that when engaging in financial markets, you must prioritize risk above all else...
You must not deify anyone or let readers mistakenly think it’s easy to make money in financial markets; as far as what I do,Futures Exchange,out of ten thousand people, only two can make money, which is a statistically accurate figure. The other nine thousand nine hundred ninety-eight are losing money.
- Huang Yixiong
He is a legendary figure in Taiwan's financial markets, widely spoken about but never personally witnessed. Some describe him as the only trader from Taiwan with international renown. He arrived in Taipei alone at the age of 17, starting with a capital of 200,000. At his peak, his yen futures positions accounted for 5% of the global market, and his net worth reached 20 billion. Over forty years, he experienced eight instances of losing everything, yet always managed to make a comeback, earning him the title of 'Taiwan’s God of Speculation.'
Chairman of Yuanta Securities, He Mingheng, who has known him for many years, recalled: 'Back then, watching his trading firsthand, he remained consistent throughout, which is extremely rare. Undoubtedly, he is a key figure for Taiwan on the international stage.'
This is Huang Yixiong, originally from Xiluo Town, Yunlin County, Taiwan. His family went bankrupt, forcing him to drop out of school and work. Before transitioning to futures trading, he entered the stock market three times before finally profiting and exiting. Back then, he used rudimentary tactics akin to basic street fighting, but now, he wields advanced techniques in the futures market like a master, akin to the invincible Eastern Heretic in fiction. His wealth has reached over 20 billion, and the twists and turns of his journey are thought-provoking.
Taiwan’s Business Weekly interviewed this 'Top Futures Master of Taiwan,' meeting at the seaside of Bitoujiao. Their conversation lasted eight hours. Starting with the topic of the 'Taiwan Stock Exchange reaching the 10,000-point mark,' Huang Yixiong immediately shifted the discussion to the United States across the Pacific Ocean, interpreting the personalities of successive Federal Reserve Chairs from an unprecedented perspective to cleverly analyze the future outlook of Taiwan’s stock market after breaking the 10,000-point barrier. Setting aside the present, he reflected on his own dramatic life, step by step sharing the wisdom and insights gained from four decades of financial operations.
On Experiences: Heartbreaking Past Unfit to Recall
Huang Yixiong hails from a bankrupt family in the small town of Xiluo, with seven siblings. His father passed away early, and while his eldest brother graduated from the Department of Foreign Languages at National Taiwan University, he, being the youngest, could not afford tuition after the second semester at Xiluo Junior High due to financial difficulties.
After taking a leave of absence from school, he worked on odd jobs such as making wooden boxes for the local seedless watermelon chess game to support his family. Later, he worked at Xiluo Wanweixiang Food Factory and remained in Xiluo until he was 17.
There were countless bitter stories during that period. Recalling these childhood memories, Huang Yixiong, now 40 years old, said with a heavy heart: 'I really can't talk about anything before I turned 23!'
It wasn’t until he was 17 when he went north to start a fabric trading business that he began to accumulate some money. At the age of 23, seeing many relatives and friends involved in stock trading—including his older siblings, who were frequent participants in the stock market—he decided to enter the stock market as well, marking the beginning of his legendary journey.
As soon as he entered the stock market, he lost all the money he had earned from his business and had to liquidate his last asset to pay off debts. After repaying his debts, only 200,000 yuan remained. His family strongly opposed him continuing in stocks, but Huang Yixiong could not let go of the stock market. This time, his re-entry resulted in losing almost everything—only 20,000 yuan remained out of the original amount, leaving him with 3 million yuan in debt. 'Not only did my wife lose all hope in me, but I even considered committing suicide by turning on the gas,' Huang Yixiong recalled.
After one month of stepping away from the stock market to reflect calmly, he realized that only a few people consistently made money in the stock market. He humbly sought advice on how to succeed in stock trading while also starting to extensively read books and newspapers. With only 20,000 yuan left, he returned to the stock market, focusing on intraday short-term trading. Every time he placed an order, he stayed highly alert, cashing out immediately upon any minor profit. Huang Yixiong described this period humorously: 'I became like a beggar, satisfied with whatever small gains came my way.' Reflecting on those three years spent 'snatching profits' under the stock exchange board, he remarked: 'What I learned were the fighting techniques of the Beggar’s Sect.'
On Risk: Don't walk the tightrope; remember to lay down steel plates.
The main reason I am willing to come forward for this interview is to convey one important message: When entering the financial markets, you must prioritize risk above everything else...
Do not create myths or mislead readers into thinking it’s easy to make money in the financial markets. Based on what I’ve seen...Futures Exchange,For every 10,000 people, only two can make money—a statistic that holds true. The remaining 9,998 individuals are losing money.
Huang Yixiong laid out the prerequisite conditions for granting his first in-depth media interview, speaking in a mild yet resolute tone. This reflects his ultimate insight after four decades of navigating between wealth and risk.
Unlike the stock market, futures trading involves higher leverage and greater risks. Therefore, to emulate Huang Yixiong, who has been actively trading in the futures market for nearly four decades without faltering, at least two prerequisites must be met: First, the ability to accurately predict market trends; second, the capacity to endure prolonged exposure to high levels of risk.
"As financial journalists, even if you write an article with incorrect analysis, you still get paid. In my case, one wrong move in futures trading could leave my wife and children without food!" Though said jokingly during the interview, this remark truly encapsulates the reality of Huang Yixiong’s forty-year journey in financial trading—fortune favors the bold, but two critical factors cannot be compromised: accurate market judgment and strict risk management.
Today, when Huang Yixiong speaks of his life wisdom, he starts with the topic of risk. "Many people don’t know that I have experienced 'wealth reset' eight times in my life." Reflecting on these eight unimaginable low points, he shared a sincere piece of advice for the youth: "There is no such thing as instant wealth in this world. So, don’t rush anything; instead, focus on doing things right."
Huang Yixiong openly admitted, "When I first invested in futures, I was looking for a shortcut. But you should not just look at the outcome; the process comes with significant costs."
Huang Yixiong regretfully noted that his repeated returns to zero wealth were due to his impatience. Upon reflection, he concluded, "If you enter financial trading with the mindset of overnight riches, success will be impossible because your research won’t be thorough enough." Moreover, the desire for quick profits may lead to overcommitting personal assets without adequate preparation.
However, shifting tone, Huang Yixiong discussed how he had also cleared debts and regained substantial wealth eight times in his life. He remarked, "This shows there are multiple opportunities for success in one’s lifetime." If young people focus on “doing things right” and find the most suitable way to profit, then, "Even if progress is slow initially, they can still succeed by seizing a few key opportunities in life."
Another insight into risk management is, “Don’t walk the tightrope; at the very least, try to lay down steel plates.” Huang Yixiong emphasized.
The phrase “walking the tightrope” refers to operating without sufficient safety margins, or simply aiming to achieve big gains with minimal effort. On the other hand, “laying steel plates” means preparing more capital so that an unexpected market fluctuation doesn’t send you crashing down. As Huang described it, “When strong winds blow, you can still crouch safely on the steel plate.”
"While walking across the tightrope might promise several castles and herds of cattle upon reaching the other side, there’s no guarantee you’ll make it. Conversely, laying steel plates may require more resources and only offer a modest house, but it’s far more secure."
Whether it’s about “not rushing but focusing on correctness” or “laying steel plates rather than walking the tightrope,” Huang Yixiong's emphasis remains on risk management. Speaking of this, he explained the “two out of ten thousand” success rate he mentioned earlier in futures trading. This figure is absolutely accurate. Back when he placed orders at Dean Witter Futures in Hong Kong, company data showed that among nearly ten thousand futures clients in Hong Kong, only two settled their positions profitably—one of whom was Huang Yixiong.
"There are countless books on the market teaching people how to invest in stocks and futures, but very few actually succeed in making money. Have you ever wondered why?" Huang Yixiong believes that the key lies in personality traits; one must possess certain qualities to endure the rigors of financial market trading. "These personality traits, however, are closely related to your life experiences." Huang then breaks down what he considers the most critical success factors for a trader: humility, perseverance, and decisiveness.
On Self-Reflection: A 20-Year Journey of Debating with Myself to Validate Ideas
Many people in the market teach you how to get rich through investing, yet winners remain few while losers are always the majority. Why? Because no successful method can be entirely replicated by others.
My methods work because they are 'my methods.' My upbringing has shaped my unique personality traits, enabling me to make the most of these operational strategies. As for my personality traits, they likely boil down to humility and perseverance.
Huang Yixiong admits that his ability to repeatedly rebuild from scratch in the futures market is deeply tied to his life experiences. Among these, 'humility' and 'perseverance' have been crucial lessons he has learned.
Originally from Xiluo, Yunlin, Huang dropped out of middle school after just a few months to start working. "In our youth, we never dared to blame fate or others," Huang recalls. The hardships he faced during his teenage years taught him the value of humility and the importance of seeking help. "Being humble towards people fosters harmony, and being humble towards tasks leads to constant improvement and thorough preparation before taking action."
He stresses that only through humble self-reflection can one continuously improve. "You might find it hard to imagine, but I spent 20 years tracking macroeconomic changes to validate their future impact, comparing my views with international discourse to see who was right." This habit of constantly challenging and debating oneself goes against human nature, requiring extraordinary mental strength. "This underscores the importance of 'perseverance.' Only with perseverance can one persist in doing difficult things, including learning."
After 40 years of countless battles, Huang Yixiong believes his greatest strength is decisiveness. At critical moments, he acts without hesitation, always having a contingency plan ready. "It’s about drawing the sword and striking, with no room for distractions."
"Decisive action" is widely regarded as a key factor in Huang Yixiong's repeated successes. However, he is well aware that the foundation of decisiveness lies in humble self-reflection and the cultivation of perseverance. "Let me reiterate: I’ve endured hardships, and my upbringing forged my character. If you lack humility and perseverance, stepping into financial market operations can be perilous."
On Cultivation: The Easiest Thing in the World is Reading Books
No matter what you do, to succeed, you need to accumulate sufficient knowledge... Huang Yixiong joked about his financial operations, saying, 'I only started reading extensively after I entered the stock market, at around the age of twenty-three.' Besides purchasing textbooks for self-study, he also read newspapers extensively. 'For financial trading, you need to study every field of knowledge,' he said.
'Among all aspects of macroeconomics, the stock market is the most sensitive to monetary policy.' This is Huang Yixiong's principle for judging asset price trends, and this conclusion is, to some extent, derived from reading newspapers. In the early 1980s, economists Jiang Shuojie and Wang Zuorong each published editorials in newspapers debating Taiwan's monetary policy direction. The 'Jiang-Wang Debate' became an important reference for Huang Yixiong to understand monetary policy and discern the root causes of financial market fluctuations.
However, although he emphasized the importance of 'studying everything,' Huang Yixiong said, 'In fact, the simplest thing in the world is reading.' As long as you are willing to invest time and effort, you can acquire sufficient knowledge.
So, what is the most difficult thing? 'Making money!' Huang Yixiong continued, explaining that turning knowledge into wealth is not something you can achieve through effort alone. What you need is 'the ability to think independently!'
On Thinking: Imagination is limitless and more important than knowledge.
Financial indices must be analyzed from a macroeconomic perspective, but remember, the economy is a form of human social behavior, and economics is not a law-based science... Therefore, you not only need knowledge but also independent thinking, integrating all objective conditions with your acquired knowledge.
Huang Yixiong places great emphasis on the importance of 'independent thinking.' However, he believes that during the process of independent thinking, factors such as the amount of knowledge you have accumulated, life experiences, and sensitivity to cultural literacy often cannot be easily articulated. When someone once asked him to share his mental journey in futures trading, Huang Yixiong replied, 'My mental journey is something only I can truly understand.'
That said, he still highlighted one key ability related to independent thinking: imagination. 'I strongly agree with a statement by Einstein: Imagination is more important than knowledge... Knowledge is limited, but imagination is limitless.' Only through the connection of imagination can seemingly unrelated variables be linked together, allowing for broader and more nuanced thinking to deduce trends that others have yet to see.
Regarding the case of Huang Yixiong 'spotting trends ahead of time,' Wang Ding, a former futures company employee, recalled vividly that one or two years before the financial crisis, Huang Yixiong had warned colleagues at Baoli Futures Company that the U.S. real estate market could experience a significant downturn, potentially triggering a global economic crisis.
At that time, Huang Yixiong suggested investing some spare cash in gold, as gold, being a tangible asset, retains value during extreme asset price volatility and serves as a hedge against the U.S. dollar.
Wang Ding later recalled that although no one actually bought gold at the time, when Lehman Brothers went bankrupt and the financial tsunami occurred in 2008, he immediately remembered the advice of this 'prophet.' 'He could foresee the crisis from changes in the macroeconomy, far ahead of everyone else.' Wang Ding said admiringly.
A more recent case was Huang Yixiong’s heavy bet on Japanese stock index futures in 2013, before Japan announced its ultra-loose monetary policy, which drove a surge in Japanese stocks. He recalled that it wasn’t just a deduction from economic data but rather his observation of Japanese Prime Minister Shinzo Abe's ambition. The process involved comprehensive associations of cultural literacy and historical perspective.
Regarding these achievements that amazed outsiders, Huang Yixiong viewed them with equanimity. He said, 'Independent thinking and the application of imagination, of course, require practice, but what I do is futures trading, where the use of various objective data can often be a matter of life and death!' His implication was that, for Huang Yixiong, exercising imagination might allow for free-thinking, but there was absolutely no room for romanticism. This extreme discipline, unimaginable to ordinary people over long periods, naturally explains why Huang Yixiong repeatedly emphasized that logical thinking is difficult to articulate.
On Success and Failure: When you think you have succeeded, it is the beginning of failure.
In the past, when I looked at the sea here, the color was always a clear blue, but today, the sea looks somewhat gray… After decades of trading futures, my eyes have developed some problems. If you ask me whether wealth is important, I would say I would rather regain my health.
As evening approached, the horizon at Bitoujiao Coast began to glow with orange sunset hues. We asked him about his views on wealth and life. He gazed at the vast ocean thoughtfully and gave the aforementioned response.
We then asked, 'So, after engaging in futures trading for 40 years, do you consider yourself successful?'
'There really is no such thing as success in life because you must constantly strive for progress,' Huang Yixiong stated. The longer he fought in the financial markets, the more he felt there was still much room for improvement. 'Knowledge, character, judgment… In every aspect, it seems there is endless room for growth.'
He said that he was a passionate person, which was the reason he managed to successfully rebuild his fortunes after eight instances of losing everything. However, this passion was not for earning more wealth, but rather stemmed from a desire for self-growth and an enthusiasm for validating his own abilities.
'When you think you have succeeded and feel a sense of satisfaction, that becomes the biggest obstacle to pursuing further progress and marks the beginning of failure. Stopping progress is the most dangerous thing—not only in financial trading but also in any endeavor.' He spoke slowly.
Postscript
Huang Yixiong, hailed as a legendary speculator in Taiwan's financial history and self-proclaimed 'Lone Swordsman,' spent significantly more time discussing risk management than futures trading during the entire interview. When asked why he repeatedly emphasized the importance of risk control to investors, Huang paused.
After some thought, he slowly responded, 'Many people take reckless chances and invest in stocks or futures carelessly, leading to repeated tragedies over the years. Each time I read such reports, it deeply saddens me.'
He explained that although he rarely browses online news since retiring, he is aware that many legendary stories and trading insights about him circulate on the internet. He worries that someone might blindly imitate these without sufficient personal preparation or qualifications, potentially causing new tragedies.
Therefore, he particularly hopes this interview will be reported from a broader perspective, focusing on the hard-earned lessons he has learned over 40 years in financial markets, emphasizing the rigorous discipline every market participant should cultivate.
Huang Yixiong further stressed, 'A Boeing 747 requires the assembly of over six million parts to take off. Similarly, succeeding in futures investment involves numerous tangible and intangible factors. Tangible factors include macroeconomic analysis, strategic concepts, and tactical coordination; intangible ones involve exploring one’s psychological mindset. Altogether, it’s no less challenging than launching a 747.'
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Editor/Doris
