Most of the traders easily react to the fud that is why they are panic selling and panic buying. If a trader lose everything he/she has, then it would stop him to trade crypto coins. Definintely, a wise trader shouldn't trade coins without a basis and that is the key to win the trade.
That is true especially if the traders don't have the right information about what is going on in the market. Or they only follow the other people's prediction without analyzing by themselves. A wise trader will not do that because he will think that he needs to make his analysis before he decides something so he knows what the next step he should do if the market is going to go up or down is.
But mostly, the traders itself don't dare to make their analysis because they are worried if their prediction is wrong or they cannot make a profit. I think that will depend on their experience in trading because as long as they can trying to trade, no matter if they got lost, they will get experience which I am sure that will help them to make the analysis. Besides that, a wise trader will only trade if he can see a chance to make a profit from his analysis.