Let me show you why wealthy men like changpeng Zhao(cz), Brian Armstrong, Jed mc Caleb etc can hold billions in Bitcoin without being afraid.
I think we can mention Microstrategy also.
The difference is they are holding millions/ billions worth of bitcointalk but I guess we are talking about retail investors who mostly invest in thousands at most, losing 20% in a few minutes is not going to be easy for them which is why they are prone to panic selling.
So what should they(small investors) understand is the basics of investment, risk tolerance, compounding effect, and diversification, again its a vast topic that can't be explained in one post but if someone is interested in knowing the secret of being a successful investor then they will learn those things eventually.
For now, if you are a newbie just focus on your long-term financial goals and don't get tempted by short-term trading.