The traders I know well would have been stopped out a long time before the avalanche. Rule 1 in trading: Protect your gains.
As a more novice trader, one of the lessons I learned when not committing to rule 1 was that when the avalanche took place, I was never able to get below the sell, so I always chased down and then got hit on the way back up, thus never actually recovering any shares, but losing what I had in the process, including the gains. That convinced me to use stops. Once having learned that lesson (and I admit it took more than 1 experience), I always stopped my gains at a happy point, and then put buys somewhere under the stops where I thought bounces would take place. I only did the buys on stocks I trusted fundamentally, like this one, where I knew the rebound was almost certain.
Those are my experiences. I see the inexperienced people getting caught in those avalanches, not the experienced. And yes, it can be traders, but not the smart ones.
News 
Market Data 
Discover 
AI
