This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Are You Guilty of Panic Selling?

'Fess up if you are. Don't feel bad, though, as many investors let their emotions get the best of them and resort to the SELL ALL button on their trading website.

The urge usually comes the night before. Many times it occurs after a weekend of bad news or after a lackluster after-hours report.

I have been a professional money manager over the last 18 years, and I can usually tell who is going to call and when they are going to call to hit the panic button. These nervous types represent about 1% of my clientele, even after I have tried real hard to get that number down to zero.

I am not saying that selling everything is unwarranted in every situation, however. It depends upon what you own. This last Monday was a very good example. More bad news out of Europe over the weekend and before the open of the market led to about a 200-point selloff.

I received one panicked message on my cellphone late Sunday night. I listened to it on my way to work before the market open on Monday. It was from one of my usual suspects and it came during a very typical period of time in the market-high volatility.

The problem is that the markets are almost always volatile. It seems that there is always some wall of worry to climb somewhere. If is not the latest jobs report in the U.S. then it is the rising interest rates in Spain.

How does one learn to handle volatility, and is it wise to hit the panic button and sell everything? Again, the answer is very logical. It depends upon what you own.

I went through all of my holdings on Monday, just as I do every other day. I usually own about 25 stocks in the portfolios that I manage. By the way, my aggressive portfolio is now up 14.1% year-to-date, while the Standard & Poor's 500 is up just 6.2%.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
DLTR $79.68 0.00%
ORLY $208.13 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs