I Didn’t Panic When Stock Market Dropped

Hello there,

The chart below shows how stock market / IDX Composite / IHSG dropped around 15% in the past 5 days. It was a sharp fall, and it even led to a trading halt on 28 January.

Imagine that, stock market fell from 9,000 to 7,600. For many people, that kind of drop feels scary. When the market falls that fast, people naturally start to worry, overthink, and panic.

But honestly, I did not panic.

Similar to what happened recently, the market turned red because of geopolitical tensions involving the U.S., Israel, and Iran.

Still, I saw something different.

Not just a market crash, but a pattern I had seen before.

When IHSG Dropped, Everyone Started Selling

When stock market dropped sharply, the reaction was very predictable:

• Panic selling
• Negative headlines everywhere
• Fear spreading faster than facts

It felt like something big was about to break.

But here’s the thing: the market often reacts faster than reality.

I Didn’t Panic When IHSG Dropped Because I’ve Seen It Before

This was not the first time the market reacted like this.

We have seen similar patterns during:

• The COVID crash
• Interest rate hikes
• Global recession fears

The trigger may be different, but the behavior is often the same:

Fear → Sell → Regret → Re-enter at a higher price

That cycle keeps repeating.

What I Focused On When IHSG Dropped

While many investors were reacting emotionally, I asked myself a few simple questions:

• Has the business fundamentally changed?
• Are banks like BBCA or BBRI suddenly weak?
• Is Indonesia’s economy collapsing?

My answer was simple:

No.

And if nothing fundamentally changed, then why should I panic?

Why I Didn’t Panic When IHSG Dropped

Let’s be honest. Investing is not only about:

• Financial analysis
• Valuation
• Market timing

It is also about emotional discipline.

Because in moments like this:

• Your portfolio turns red
• Your conviction gets tested
• Your decision-making becomes blurry

And that is where many investors lose, not because the market drops, but because they make poor decisions under pressure.

What I Did When IHSG Dropped

Instead of selling, I did something very simple.

I held.

And in some cases, I even considered:

• Adding positions
• Recalculating my average price
• Preparing more cash

Why?

Because the best opportunities rarely come when things feel comfortable.

What Happened After IHSG Dropped

As expected, the panic did not last forever.

The market started to stabilize. Buyers came back. Confidence slowly returned.

And suddenly, the same stocks people were afraid of started to look interesting again.

That is how the market often works.

What IHSG Dropped Taught Me

This experience reminded me of a few simple truths.

1. The market rewards patience, not reaction

If you react to every headline, you will often move too late.

2. Fear creates discount

And discount is often where long-term wealth is built.

3. Most people do not lose money because of bad stocks

They lose money because of bad decisions made under pressure.

Final Thoughts

You do not build wealth only when the market is calm.

You build it when:

• Things feel uncertain
• Prices do not make sense
• Everyone else is hesitating

Because that is when conviction matters most.

So maybe the real question is not:

Why did IHSG drop?

Maybe the better question is:

What did you do when IHSG dropped?

If you’d like to explore more of my notes, feel free to check out my other sections on code, databases, and even management – all still connected to the broader world of technology.

That’s all for now, folks! Keep learning, keep building, and most importantly enjoy the journey! 🥰😍