I spent the last year taking a small chunk of my money and investing it directly into the market. I've lost some money and made some money and learned a TON.
So when the market dropped over the pat few weeks, I did my research, found some stocks on sale, and started putting money in. Things are still dropping but I expect a 5X-10X return on several of my bear investments over the next 12-18 months. I told a coworker about it and he put some money in based on my recommendations.
24-hours later I reached out to let him know about another stock I purchased after it dipped to amazingly low levels. He told me he'd already sold the stocks I'd recommended because they were dropping too much. I checked it out and they had dropped 10-15%. To say I was shocked is an understatement. But after taking a few minutes to catch my breath and think it over, I realized that the problem is mine, not his.
He doesn't have my history, knowledge, cash buffer, general savings, overall investment strategy, or (most importantly) my risk tolerance. All he knows is that I said if he put money into a few stocks he would make a sizable return. I didn't bother to ask him if he could handle the emotional roller coaster of a bear market. That was my failure. I didn't prepare him for what was about to happen and he's made some bad decisions and lost some money because of it.
So, as we see others freaking out about the market, I recommend we don't belittle them. Instead, encourage them to stick with their current strategy (whatever that may be - though this is a great time to encourage folks into VTSAX or something similar) and don't get mad at them for acting on their emotions. They're scared, many of them had little to no investments in 2008 and don't have the stomach for what's happening.
For the rest of us, it's an opportunity to make money, sure, but more than that it is a chance for us to use our positions of financial security to provide guidance, encouragement, and stability for those who are freaking out. Let's do the greater work and help our friends, family, and coworkers stay the course. And for those who make bad decisions, let's strive to find ways to help them make the best out of a bad situation; one that works with their risk tolerance.
We are uniquely qualified to help folks through this time. Let's do it!