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Priya Gupta· 8 years ago
Making finance and business topics easier to understand through practical, well-researched, and reliable insights.

How to Avoid Panic Selling During Stock Market Crash?

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Replying to the question above
Answered on05/13/26

The biggest way to avoid panic selling is honestly to stop reacting emotionally to short-term market moves. Many investors sell in fear during crashes and regret it later when markets recover. Having a long-term investment plan helps a lot because market volatility is normal. Diversification and investing only money you can keep invested for years also reduce panic.

Constantly checking portfolio losses every hour usually makes emotions worse. Experienced investors often see crashes as temporary phases rather than the end of everything. Honestly, market fear spreads quickly because people react more emotionally to losses than gains.

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Ved Tiwari
Two decades of chartered accountancy — turning complex financial and business realities into writing that professionals and decision-makers can actually use.
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Ved Tiwari is a Chartered Accountant (CA) and finance writer with over 20 years of professional experience in taxation, auditing, financial planning, and business advisory. He is a Fellow Member of the Institute of Chartered Accountants of India (ICAI) — one of the most rigorous professional qualifications in Indian finance — and holds a Bachelor of Commerce (B.Com Honours) from Shri Ram College of Commerce (SRCC), Delhi University. His content covers personal finance, corporate taxation, GST, investment strategy, business compliance, financial planning, and India's evolving regulatory and economic landscape. His work has appeared on platforms including Moneycontrol, The Economic Times Wealth, and CA Club India, where he writes for finance professionals, business owners, and informed readers who need content built on two decades of real-world financial practice — not surface-level commentary. Over 20 years, Ved has advised hundreds of businesses and individual clients on taxation, audit compliance, and financial restructuring. He has handled complex multi-crore audits, represented clients before tax authorities, and guided startups and established firms through India's regulatory environment. He has published 400+ articles on finance and business, spoken at ICAI seminars and industry finance conferences, and is a practising member of the ICAI Western Region chapter. Across all his writing, every figure is verified, every regulatory reference is current, and every recommendation reflects the same professional standard he applies to his clients — because in finance, accuracy is not optional.

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Replying to the question above
Updated on12/29/25

Even a small hit in the stock market cascades into something big, thanks to the sensational mainstream media. This soon erupts into paranoia, FUD and panic selling. The recent crash and massive selloff around the world very well reaffirms this long-existing fact, when countless traders left their long-holding positions in big losses.

One of the first things the experts teach beginners is to understand the market well and gauge the emerging trends to avoid FUD (Fear, Uncertainty, and Doubt), in order to make sensible trades. If you’re just starting in this game, aside from attempting to groom your technical prowess, you must also put distinct effort on distinguishing news from noise, in order to avoid panic selling.

There are some steps you can take starting today to fight back your urge to panic sell your stocks even when things are very bad:

1. Find a reliable news source

This is the most important step in this process. It is imperative you have a reputed and reliable source of information. Even when consuming news from top financial websites, check the authors’ names, do a background check on them and see do they have the right track record. Find at least 4 different trustworthy source of news. When someone says something, do a cross-check with the rest. Don’t believe anything and everything you find on internet.

2.Take hands of best stock trading company

At times, when things look uncertain, everyone is in fear and your own technical analysis is failing you, the next best option is to take hands of an expert. With years of experience under their hat, you can bet on these experienced professionals to help you through the tough times. With their right advice and assistance, you can easily beat FUD and tame the tempt of panic selling.

3.Maintain a trading routine and journal 

A smart and successful trader always remembers her/his trade. These individuals always record their buying-selling actions in a journal. And they repetitively learn from their past records. This brings consistency in their trades, and consistency nourishes efficiency and sustainability, which then result in sane trading strategies, away from FUD and extreme emotions. So if you aren’t already pushing yourself to maintain a trading routine and regular journal, start doing it now. The rewards will span beyond your expectations.

These are 3 extremely simple steps to fight back the urge of panic selling and to keep yourself cool in the latest sell off. Implement them starting today and induct yourself into the league of smart and profitable traders.

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राहुल ओबरॉय
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