When Others Are Panic Selling—Drink Cola
Even when charts suggest otherwise, stock market is a game of emotions. And when accompanied with the uncertainty that this market carries, the trends can turn bearish any time. Meaning, the large room to panic sell always exist—the new traders, in particular, fall victim very first. So if you’re looking to turn yourself into a smart trader, knowing how to counter FUD – although an undermined aspect – is rather crucial.
The Basic Rule of Gains in Stock Market
While it isn’t less known and often tossed around as a clichéd saying, it’s still extremely true. When others are selling, buy; and when others are buying, sell. This is a basic rule that guides successful day traders to higher profits. But needless to say, as simplified this idea is, putting it into action is rather difficult. After all, when the price is surging high and everyone is rushing to get the piece of the cake, resisting the urge to buy some for yourself is difficult. Similarly, when everyone is selling their holding fearing a crash, it’s tough to stay calm and hold. But then again, were it easy, wouldn’t everyone do it?
The next time everyone is panic selling…
Drink a cola, relax, watch some good movies maybe.
Because here’s a thing—even when you’re an aggressive trader with decent technical prowess, beating the market trends is difficult. Institutional money always stays ahead that of individuals’. So by the time you actually realize the price dip and plan to sell, more often than not, the market has already bottomed out. This basically results in you selling low. This is the same pattern how, in lack with the right patience and knowledge, new traders fall in losses.
Identifying emerging trends is tricky which won’t happen by watching technical analysis videos on phone. Even after going for the best RSI courses and having best app for stock trading, you would have hard time finding opportunities and understanding market.
So your safest bet, when everyone else is panic selling, you hold your composure, avoid the temptation and stand strong with your asset.