For over 10 years, Lisa Detanna has served as the managing director and senior vice president of investments at Raymond James in Beverly Hills, California, where she specializes in financial planning, asset protection, estate planning, and wealth management. Lisa Detanna leverages her experience to offer investment advice.
One of the ways to lose money during a market downturn is to panic sell. Panic selling is the widespread sale of an investment due to fear or overreaction instead of rational analysis. Panic selling drives stock prices down and induces more selling.
To reduce panic selling during a market crash, investors must avoid emotional investing. Fear and anxiety often lead investors to sell their investments quickly or invest less than their financial situation warrants.
Investors should see market crashes as opportunities to buy quality stocks at a significant discount. This is often the case for long-term investors who choose to ride out the highs and lows of the market.
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