> If you have been involved in the crypto market for a long time, Panic sell is probably a familiar phrase. Even went through it with “bloody” phases in the market. The most recent event was the collapse of the FTX exchange, causing BTC to plunge from 21k5 to 16k in just 3 days. So what exactly is a Panic sell and what to do when it comes to the Panic Sell of the whole market? 1. **What is a Panic sell?** Panic sell can simply be understood as “massive sell-off”. From the name has helped us understand somewhat about it. This is a phenomenon when investors or investment groups decide to sell off their assets massively to the market in a very large amount in a short time with BTC as the head. This causes the price to drop suddenly. This action can lead to the bankruptcy of some projects and cause a sharp drop, the market will take months or even years to recover. Despite the cyclical nature of the market, panic selling is necessary for the market to enter a new phase. **2. What is the cause of Panic sell?** It is not natural that many investors decide to sell their assets and cause the market to fluctuate. Here are some reasons leading to this action such as: * **Events, negative information from the outside** Bad news such as bankruptcy floor, bankruptcy project always makes the market fluctuate and Affected investors fear such as LUNA crash, FTX bankruptcy. Usually, this information spreads very quickly and is known to many people. Through each person, information will add more or less and make the problem more serious. Since then, many investors have sold off their assets. Besides, economic, or cultural, social, political events, etc. also affect investor behavior such as the market crash on May 19, 2021 due to the ban issued by China. Crypto. * ** Psychology and emotions of investors ** The leading cause of Panic sell action is from human emotions and fear when facing the prospect of losing assets in the future. After such negative news, at these times, investors will panic and start thinking about selling when the price is still good to avoid too much loss instead of calmly evaluating and analyzing rational market analysis. * **According to the Nature of the Cycle of the Market** The two reasons I mentioned above are actually just a catalyst for it to happen, the Panic Sell takes place more strongly, but the root problem is the nature of the market. The cyclical nature of the market is like 4 seasons of a year, with Spring to Summer, Autumn and then Winter. The market needs a big crash to move into a new phase and PanicSell is essential. 3. **How does Panic sell take place in the market?** Panic sell process will take place as follows * In the market, there are news and bad events related to the industry depending on who is affected. and the time of the market that the degree of influence is different. This information makes investors psychologically confused and think about how to reduce risks. * On the chart after phase 1 occurs, the reversal candle on the chart will start to appear from small to larger numbers. * According to the chart, it broke all the hard support below. * The news goes further and further into the ears of more investors. According to the crowd effect, investors start to panic and take the same action to release assets as quickly as possible. This action will cause the price to fall and last for a few days, or several months depending on the influence of **4. How to avoid being too affected by Panic sell phenomenon? **We should understand: * **Nothing goes down/up forever** Every recession is followed by a recovery. Nothing goes up forever and nothing goes down forever. There have been many crises in the past and in the end, all have been restored to its original place. Therefore, every time panic sell, instead of fear, calmly wait for the price to return and follow Mr. Ryan’s tips. Every time BTC drops 25-30%, you can eat a wave. And according to the historical data I observe and learn, in a year the market can crash from 25% or more, about 3-4 times, just take advantage of that, the asset increases very quickly. * **A bear market is a good thing** In financial markets there are ups and downs. So is the crypto market. The market drop could be a sign that the crypto world is working properly. And after each market drop, the market will grow stronger and increase its value. Everything always repeats according to the nature of the cycle, be prepared for panic selling. * **Selling at a low price is cutting a loss** Always remember, if you sell off while the market is going down. This means you are selling at the bottom. This is not a good action if your investment purpose is profitable and focused on long-term investment. ***Of course, the falling market scares us. However, when investing, there are ways to help you avoid Panic selling. They are: *** * **Keep calm and always have a long-term investment mindset** Up and down is inevitable of the market. Long-term thinking is when we define a long-term vision from the beginning, for example, a goal for the next 1 year, 3 years or even 5 years. With this mindset, we will become a rich investor, regardless of any market fluctuations. Long-term thinking always requires people to have a suitable investment strategy to achieve that goal. In fact, the short-term Panic Sell completely only harms the account of future margin brothers with investment debt. Sometimes we experience sharp market declines for several weeks, but when one looks at the whole long history of the market, there is always an opportunity to profit and succeed. labour. * **Instead of panic, let’s take advantage of Panic Sell to make profit** Panic Sell is a great opportunity for us to make huge profits. Instead of panicking with the market, let’s use that opportunity to turn it into a profitable investment strategy. To be able to make a profit, people must first understand the nature of a panic selling and how to expect a bottom to gauge the impact of a Panic Sell. Everyone can short the market and wait when the market shows signs of recovery, then apply Mr. Ryan’s BTC tips to make a profit * **Always have a reasonable investment plan** Make a plan is the first important condition that any investor must prepare if he wants to be successful. The more detailed and specific the plan is designed, the better because it will help you reduce the loss of capital in the event of panic selling… Therefore, everyone when creating an investment plan can start with the following questions: * How is capital management conducted? * How is the process of honing and cultivating investment knowledge? * How much trading volume is reasonable? When is it allowed to increase the Volume? * How to enter, take profit and stop loss strategy? * What is the main trading method? Already have a profitable trading system?,…
Source: Collector
