Sensex Havoc. How to invest in Share Market...???

We have seen in the last year this time the sensex was scaling to the peaks as it even touched the 22K mark. But slowly the situation turned down and the sensex fall deeply and even appeared to touch 8K mark which was not thought to be reached for ever. Approximately a loss of 63% of activity. Why does this happen? The main essence of this is the thought of the share holders to become millionaires in a night. Is it possible? No way that's why they suffered such a heavy blow in the ongoing crisis laden market. Sensex is not only determined by our trading. The trading of all shareholders affect all persons. If panic selling occurs then the sensex index falls to bottom and if buying of shares is more then it scales to peaks. If they wish they can raise the index of the shares. Its simple and based on faith. Even if a crisis occurs and we have faith on the concern then we will never go to sell the shares of our loyal concern and hence the index will be a stable one. But what happens is all are thinking we may lose the money we invested and they hurriedly empty the shares and fill the meager amount they got into their pockets. This is the main reason for the share market to topple like the present scenario. Most of the investors who came to stock market after the stocks were at a peak high of 22K were those the most affected in the present crisis according to the reviewers. If it was a share holder who have been there before the 22K summit, then he might have not suffered the most because they never wait for such huge profits. They simply remove their shares once they have gained 10% gain and then they invest again. This helps them to withstand crisis and they allocate a certain part of their income/saving for stock marketing and they will never invest anything more than that whatever they may gain by it. And another thing is that they will never withdrew a share however it may lose. They will wait for the share to reach back to the face value and then they will wait for it reach 10% higher. This is the best stocking practice and if all practice this then the unwanted crisis may not prevail and the losses incurred to their assets and their life will also be saved.