Passive income investors panicking now?

Passive income investors :-

• no selling action when share price going up and higher; the wonderful feeling of paper gain (say, $50k)

• when market starts correcting so paper gain reduced (say, to $20k) or turned into paper loss   

• starts to sell when market continue to correct further so turning paper loss into locked-in losses (say -$10k)

• lacking or no more bullets because paper gain (of $50k) was not locked-in when share price was higher; and at the same time suffering realized losses (of -$10k)

where is the rationale???