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It is normal to panic when we make mistakes in trading and this is especially true when the loss involved is going to be high. When we panic we tend not to think correctly, our reasoning abilities go down because we will be operating in fight mode. Even experienced traders sometimes fail in this area. There can be many reasons why people panic. One of the reasons could be that the money that they have invested is very important for them and they cannot afford to lose that. It could be their last bit of savings which they invested in stock trading hoping to multiply the money. This is totally wrong and it must be the last thing you should do with your last bit of savings.
When we approach the trade market under such pressurized conditions we will be under tremendous stress and stressed mind cannot reason correctly. When we do not reason correctly our decisions will not be financially correct and such decisions will only aggravate the loss. Sometimes when we are under a panic attack we will impulsively sell the stocks that are going down thinking of minimizing the loss but if we wait for a while the trend will reverse itself though it may take some time. Better Trades offers many useful insights on dealing with mistakes that are normally made by beginners.