This Is the Biggest Reason Investors Lose Money During a Stock Market Crash -- and How to Avoid It

The article discusses the primary reasons investors incur losses during stock market crashes, emphasizing emotional decision-making and lack of a strategic plan. This behavior can lead to increased volatility and exacerbated declines in equity markets, particularly affecting the S&P 500 as investors react to fear and uncertainty. The risk appetite channel is critical here, as panic selling can trigger further declines, creating a feedback loop that impacts stock valuations. Traders will be particularly focused on upcoming earnings reports and economic indicators, such as employment data, which could influence market sentiment and investor behavior in the face of potential downturns.

HIGH-impact news is typically a market-moving event with multi-pip or multi-percent intraday reactions. Examples include central bank rate decisions, major CPI/NFP releases, geopolitical shocks, mega-cap earnings beats/misses, and regulatory announcements. Traders typically position-reduce or hedge ahead of scheduled HIGH-impact events, and follow the wire in real time to react to unscheduled ones (war headlines, central-bank emergency statements, surprise corporate actions). The Trading News Terminal squawk box reads every HIGH-impact headline aloud the moment it hits the wire — so active traders don't have to stare at the feed.

Active traders typically follow a three-step workflow when a market-moving headline hits the wire: (1) read the headline on the terminal or hear it on the squawk box; (2) assess whether the news is already priced in (by checking intraday price action in the seconds before) or whether it's genuinely new information; (3) act — either entering a breakout position, fading an overreaction, or tightening stops on existing trades. Trading News Terminal's Pro plan delivers wire-grade headlines within seconds of the source, with automatic audio squawk on every HIGH-impact event, so the read-assess-act cycle never waits on a refresh button.