1. What is panic selling?

Panic sell can be simply understood as "Massive sell-off". The name already helps us understand a bit about it. This is a phenomenon when investors or investment groups decide to massively sell off their assets to the market in extremely large quantities in just a short period of time with BTC being the leader. This causes prices to drop suddenly. This action could lead to the bankruptcy of some projects and cause a sharp decline, the market will take months or even years to recover. Although according to the cyclical nature of the market, a panic sell is necessary for the market to enter a new phase.

2. What is the cause of Panic selling?

It is not natural that many investors decided to sell off their assets and cause the market to fluctuate. Below are some reasons leading to this action:

  • Negative events and information from outside

Bad information such as bankruptcy floors and bankrupt projects always make the market volatile and affected investors fear like the LUNA collapse and FTX bankruptcy. Usually this information spreads very quickly and is known by many people. Through each person, information will add more or less and make the problem more serious. Since then, many investors have taken action to sell off their assets. In addition, economic, cultural, social, political events, etc. also affect investor behavior such as the collapse of the entire market on May 19, 2021 due to China's ban. Crypto.

  • Psychology and emotions of investors

The leading cause of Panic selling is people's emotions and fears when faced with the prospect of losing assets in the future. After such negative news, at these times, investors will panic and start thinking about selling off while the price is still good to avoid too much loss instead of staying calm and evaluating and analyzing. analyze the market rationally.

  • According to the Nature of the Market Cycle

The two reasons I mentioned above are actually just catalysts that make the Panic Sell stronger, but the root problem is the cyclical nature of the market like 4 seasons of a year. There is Spring, Summer, Autumn and then Winter. The market needs a strong crash to move to a new phase and PanicSell is necessary. 3. How does panic selling happen in the market?

The Panic sell process will take place as follows

  • In the market, bad news and events related to the industry appear, depending on the affected people and the time of the market, the level of impact is different. This information makes investors psychologically confused and think about how to minimize risks.

  • On the chart after phase 1 occurs, reversal candles on the chart will begin to appear from small to larger numbers.

  • According to the chart, it broke all the hard support below.

  • The news travels further and reaches more investors. According to the crowd effect, investors begin to fear and take the same action of dumping assets as quickly as possible. This action will cause prices to decrease and last for a few days, or months depending on the impact of the market

4. How to avoid being too affected by the Panic sell phenomenon? We should understand that:

  • Nothing decreases/increases forever

Every recession is followed by a recovery. Nothing increases forever and nothing decreases forever. There have been many crises in the past and in the end, they were all restored to their original position. Therefore, every time there is a panic sell, instead of being afraid, calmly wait for the price to come back and apply Mr. Ryan's tips. Every time BTC drops 25-30%, you can watch for a rebound. And according to the historical data I observed and researched, in a year the market can collapse 25% or more, about 3-4 times. Just by taking advantage of that, assets will increase very quickly.

  • A bearish market is a good thing

In the financial market, there must be ups and downs. The same goes for the crypto market. The market decline could be a sign that the crypto world is operating normally. And after each market decline, the market will grow stronger and increase its value. Everything always repeats according to the nature of the cycle, so be mentally prepared for panic sell waves.

  • Selling at low prices means cutting losses

Always remember, if you sell out while the market is going down. This means you are selling at the bottom. This is not a good action at all if your investment purpose is to make a profit and focus on long-term investment.

Of course the falling market makes us scared. However, when investing, there are still ways to help you avoid Panic selling. That is:

  • Keep calm and always have a long-term investment mindset

Ups and downs are inevitable in the market. Long-term thinking is when we determine from the beginning a long-term vision, for example, a goal for the next 1 year, 3 years or even 5 years. With this mindset, we will become a rich investor, without caring about any market fluctuations at all. Long-term thinking always requires people to have a suitable investment strategy to achieve that goal. In fact, short-term Panic Selling only causes damage to the accounts of future margin borrowers. Sometimes we experience sharp market declines of several weeks, but when people look at the long history of the market in perspective, there are always opportunities for profits and success. labour.

  • Instead of panicking, take advantage of Panic Sell to make a profit

Panic Sell is a great opportunity for us to make huge profits. Instead of panicking with the market, let's take advantage of that opportunity to turn it into an investment strategy that brings huge profits. To be able to make a profit, people must first understand the nature of a panic sell and how to expect a bottom to evaluate the impact of the Panic Sell. Everyone can short the market and wait for the market to show signs of recovery, then apply Mr. Ryan's deep decline BTC tips to make a profit.

  • Always have a reasonable investment plan

Planning is the first important condition that any investor must prepare if they want to be successful. The more detailed and specific the plan is designed, the better because it will help you reduce capital losses when experiencing panic sells... Therefore, when creating an investment plan, everyone can start and ask yourself some of the following questions:

  • How is capital management carried out?

  • How is the process of honing and cultivating investment knowledge done?

  • How much trading volume is reasonable? When is it allowed to increase Volume?

  • What is the strategy for entering orders, taking profits and stopping losses?

  • What are the main trading methods? Is there a profitable trading system yet?,...