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Panic Selling

Panic selling is dumping investments during market stress out of fear, not strategy.

Why this matters

It can lock in losses and make it hard to re-enter when markets recover.

Simple example

After a fast 15% drop, you sell everything and miss the rebound that follows.

Common mistakes

  • Selling without a predefined rule.
  • Letting headlines override long-term goals.
  • Trying to time both the exit and re-entry perfectly.

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