Some people panic for several reasons and one of them is because of the drop in Bitcoin price. When the price of Bitcoin drops, the price of altcoins is also affected and this makes many people panic selling even though they are aware that they are losing. But if we are planning to invest long term, then we will realize that price movements are very volatile
People panic for one reason - when they don't know what to do. Imagine you have a disaster plan, will you panic? No.
Only if things don't go according to plan. Most people don't have any plans for crypto at all.
The first rule on trading is to trade without emotions, the more you keep chasing losses or not cut the losses the more you go deeper in losses. The market can stay irrelevant more than you stay relevant, the higher the market price goes up the more seller keep adding to their positions to make a profit if reversal happens on trend. Having a proper trading plan saves traders to make useless trades, having money management will not cause a margin call or stop out a notification on trading platforms.
Agree, a trading plan is important so that we don't panic when our trading position is against the market. Cut loss can be an option to save our portfolio from deeper losses. But if we plan to invest in the long term, then we should not look at price movements in a fairly volatile market