Panic Selling: Buy The Fear & Sell The Joy

panic selling

Many subscribers (mistakenly) assumed that we were stating that the markets were ready to Drop. And they started to close their longs because they felt a crash was imminent. One thing needs to be stated clearly. We never panic, for situations that trigger panic are nothing but hidden opportunities that the masses are too blind to see. It is always prudent to bank some money when the position is showing hefty gains. Market Update Aug 29, 2021

We stated that if the above hypothesis pans out, the massive correction many experts expect might be somewhat muted. Use the subsequent pullback to start a trading journal if you are new. This provides deep insights into how emotional 90% of traders are. To defeat fear/panic, one has to understand it. You can’t control it, for if you do, it will explode one day, and the consequences will be deadly. You have to see it for what it is. A totally useless emotion whose only function is to make sure you do the wrong thing at precisely the right time. Fear is the trigger for panic selling. Panic selling is where the masses give away top-quality stocks for almost free when logic is overruled by the totally useless emotion of fear.

Not one investor in the world can prove that giving into panic paid off over the long run.
    -If they dare attempt to take this challenge, this graph will put an end to any rubbish argument they come out with.

DOW 100 years chart

This is a 100-year chart of the Dow, and as you can every single disaster proved to be a long-term buying opportunity. If one deployed all their funds during a mega-disaster type event, one would be 20X richer, if not more, within a relatively short period. This is especially true after 1990. When the Dow dipped below its main trend line, most technicians would have panicked. Still, this development proved to be an even better opportunity.

The Tactical Investor motto is simple. Panic selling is an alien term as Tactical Investor never allows fear to get a foothold in the decision-making process. There is no exception to this rule. Secondly, we view disasters through a bullish lens. We proved this in real-time several times in the past. The most notable example was the COVID crash. Thirdly we never deploy all our funds in one shot. Fourthly, we stroll out of the door; we don’t stampede. Health is the number one investment at T.I., and there is no way our subscribers or we can be healthy if we give into panic. Investing should be fun and not a stress-filled event. As one starts to understand the inner workings of the markets, one will see that watching the news or following what the expert’s state is a total waste of time. Put your valuable time to better use.

The recovery rate from crash to boom will accelerate as the money supply rises. Look at how fast the markets recouped from the COVID crash.

We are erring on the side of caution, not because we are nervous. We think that the markets might (keyword being might) provide us with an even better opportunity shortly. If this opportunity does not come to pass, we have plenty of stocks to redeploy our capital into. So, there is Plan A and B. We even have a Plan C in place, but we don’t think we will need to put it into play at this stage of the game.

Everybody panics when the word correction or crash comes to mind, but what 99% forget is that those that buy during this phase bank massive profits. The only intelligent game plan is to look at the masses and take the opposite stance. Jump in when they panic and vice versa. This is the game plan the top players have relied on since the inception of the stock market. Market Update August 21. 2021

How do you find bargains if the system is flooded with money, you cause tension, and you let that tension boil until the masses panic? Even better than creating a stampede is to make the masses think that the markets are erratic and have no rhyme or rhythm. Have you noticed that not every stock will rally when it declares breakout earnings? Conversely, companies that fail to deliver don’t always crash. This attack leads to more bargains because it is a psychological attack that triggers fear, anxiety and uncertainty, known as the terrible trio in the inner circles.

The ideal strategy would call for a mix of the above two. Start with the terrible trio and then shock the masses by creating a sharp sell-off but one that is short in duration. The already stressed minds of most investors will not be able to deal with the terrible three and a market sell-off. So, they will dump top-quality shares for next to nothing.


Remember that as more money enters the system, the volatility increases. Because the only way the top players can deploy the additional sums of money they have accumulated is to trigger a sell-off. For now, shares are not being created as fast as money is added to the system. The top players will never buy at the market; they always want a bargain. They are masters of this game.
They have conned the masses for millennia. They ensure their progeny understands the pivotal role history plays in and out of the markets. Hence their offspring hit the ground running while the masses are still learning to crawl. It is easy to play catch up, for their entire strategy utilises fear as a weapon. If the herd understood this, they would no longer have to crawl. Instead, they could also hit the ground running.

Always focus on the opportunity factor when the masses are in panic mode. That is what the top players do. When the trend is positive, panic-based events should be viewed as a Godsend. Learn to take the opposite stance and be a true contrarian when everyone panics, celebrate and vice versa. Most contrarians are nothing but fashion contrarians, AKA fake and flaky contrarians. The moment the going gets tough, they fold like paper tigers and seek safety in the caves of misery.

Some early signals indicate that the correction might occur in two phases. One during the Sept-Oct period and a stronger one, somewhere in the Jan-Feb 2022 timelines. The number of experts expecting a correction is rising, and such a development could throw them all off guard. If the signs strengthen, we will discuss this development in more detail. For now, just consider it as an extra morsel of information.

Other Articles of Interest

good stocks

Good Stocks: Value Stocks Usually Fall under this category

One would assume that individuals would be happy to invest in companies with solid fundamentals. One example among many companies ...
Read More
Negative Retained Earnings on the rise in the technology sector

Negative Retained Earnings on the rise in the technology sector

What does the term Negative retained earnings imply? According to askalot: Negative retained earnings. When a company records a loss, ...
Read More
Market Volatility

Market Volatility: To Dance or Not to?

This pattern of rising Market volatility will continue until the MACD’s (in the weekly charts posted below) undergo a bullish ...
Read More
Fed Tapering

Fed Tapering: To Party or not to Party?

The COVID narrative is about to end. This last stage is akin to a selling climax before a bottom takes ...
Read More
market sentiment

Market Sentiment: Is Turning too bullish

September has, in part, lived up to its name as being one of the worst months of the year. While ...
Read More
Federal Reserve bank of New York

Federal Reserve bank of New York; What’s their Mission?

Like every other Federal reserve bank, they have on a mission only; Inflate the money supply or die trying. The ...
Read More
Reflation Rebuttal

Reflation Rebuttal?

Notice a trend here; the herd always needs something to fret about. The media understands this, so they churn out ...
Read More
margin debt out of control

Margin Debt: Is it out of control?

Once the Dow challenges 33,000 or the Nasdaq trades past 14.5K, it will move to the “low level” mode. Market ...
Read More
Stock Market Cycles

Stock Market Cycles: When to buy & when to sit

90% of traders/investors assume there are only two stages in the markets, buy and sell. There is a time to ...
Read More
Stock Market History and Market Crashes

Stock Market History and Market Crashes

History is clear on this topic; the masses never learn. From the Tulip mania to the Coronavirus Pandemic crash, nothing ...
Read More

Stock Market Fear Index: The Crowd is still nervous

If fear starts to seep in, remember this. We have a very aggressive Fed, and their only purpose now is ...
Read More
US stock market

Can the US Stock Market & US dollar Trade-in Tandem?

Yes, they can, foreigners looking for stability will move money into the US stock market, they win on both ends, ...
Read More
tactical investor forums

How To Add Images To PHPBB Forum

How To Add Images To PHPBB Forum Posts The process of adding images to your PHPBB Forum posts is rather ...
Read More

Dow jones trends: Sharp Corrections Should Be Embraced

American households are socking away large sums of cash amid economic uncertainties later this year such as a new wave ...
Read More
Stock market trends 2020 and Beyond

Stock market trends 2020 and Beyond

On the same token, the reason so many Magellan fund subscribers lost was that they were trying to outdo Lynch ...
Read More
Herd behavior: The Mass Mindset Is doomed For Failure

Herd Behavior Always Leads To A Negative Outcome

Herd Behavior: The Gift That Always Rewards With Loss Traders that are driven by fear lose on both ends of ...
Read More
Dow trends: Is Dow 33k Next?

Dow trends: Is Dow 33k Next?

There is a 50/50 chance that before the Dow trades to new highs, it could shed 1000 to 1500 quickly ...
Read More
Tech Trends 2020 The Future of Farming

Tech Trends 2020: The Future of Farming

In this section, we only discuss future trends; if we are going to establish a position in a company that ...
Read More
Investment guru end

The death of the Investment guru

It is quite interesting to note that despite the Nasdaq putting in a series of new highs, bullish sentiment refuses ...
Read More
AI trends

AI trends: The Future is all About AI?

This chart below shows you how formidable a lead the US has over the rest of the World in terms ...
Read More
cannabis market

Cannabis market

The chart speaks a thousand words, so, what can we conclude from this trend. One people like to feel good ...
Read More