Why is it so common that anytime markets drop suddenly, the internet treats it like a live emergency?
You can, in real time, feel the prices move as social media feeds explode and even those who have no idea what’s going on want to react, either to escape losses or to prove they’re fearless.
But on the other side, we have experienced investors. These are everyday people who can slow the situation down, not because they’re calm by nature, but because they know what panic does to returns.
Here’s how they roll!
1. They Identify the Type of Panic First
Not all situations are the same, and experienced investors don’t treat them as if they were.
They ask themselves:
Is this forced selling (margin calls, liquidity issues)?
Is it macro fear (rates, inflation, policy)?
Or is it just sentiment flipping after a long run-up?
Each one leads to different outcomes, but if you’re online, you’ll notice how most online content will completely ignore this and lump everything together.
2. They Look at Cash Flow vs Price
Price drops are seductive and will always get attention, but cash flow is that loyal wife that always tells the truth.
Before doing anything, investors check whether the underlying asset is still producing income or demand:
Are rents still being paid?
Are customers still buying?
Are revenues actually falling, or just expectations?
With resilient assets, like those inspired by Vela Bay, the answer is often reassuring. Cash flow holds, short-term panic fades, and value quietly endures.
3. They Use Liquidity as a Weapon
In panic, a true investor will see liquidity as value. An experienced investor knows to keep cash or liquid assets on purpose, even when it feels inefficient during good times.
When others are forced to sell, liquidity lets them buy without rushing, negotiate better prices and avoid taking losses elsewhere.
4. They Average In, Not “Call the Bottom”
Trying to time the exact bottom is a beginner mistake, and if you want to be a pro, learn to break entries into pieces:
Small buys at worsening prices
More, ONLY if conditions stabilize
This reduces regret and protects capital if panic deepens and no single decision needs to be perfect.
5. They Don’t Confuse Volatility With Risk
Panic makes volatility look like danger, and as a pro investor, you need to separate the two.
What may look like a volatile asset with stable fundamentals may be risky emotionally but not structurally, whereas a calm-looking asset with hidden leverage can be far more dangerous.
In situations like this, it helps to have a clear benchmark. Using the Vela Bay price as a reference allows you to make informed decisions based on actual downside risk rather than the fear a chart might inspire.
6. They Know When to Step Away
As with life, substance also means restraint. If you can’t explain where returns will come from or if the downside is unknowable, then don’t act!
Sitting on cash during chaos is still a position.
With the advent of platforms like X (formerly Twitter) the internet became a panic box for both smart and less savvy people alike. As a smart investor, it’s important to treat unsubstantiated reactions as a pricing error in order to stay solid.