Think about how you would behave while traveling on a Mumbai local train and do the same with your equity investments.
You don’t de-board the train at a station simply because you see hundreds of others de-boarding, do you?
Rather, you calmly watch them go.As your station approaches, you gradually start making your way through the crowd in advance to get down at your destination. That is exactly how you should behave as an equity investor.
Do not panic and
start selling any time simply because hundreds of others are doing so.
Rather, be focused on your goals and time horizon, and gradually start making your way out by selling your equity investments over a period of time as you draw closer to consuming your money.
Having said that, there is one reason to exit a train as soon as you
can - when you realize that you have boarded the wrong one! That’s
similar to selling a stock when you realize you made a wrong choice
or the company you invested in is no longer investment worthy.