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.