Panic Selling

Have you ever witnessed a stock's price plummet within minutes, causing widespread chaos among investors? In 2020, the market experienced its largest single-day decline since the 1987 crash, with the S&P 500 dropping by 12%. This staggering statistic underscores the phenomenon known as panic selling - a reaction often driven by fear and emotional turmoil rather than rational decision-making. Panic selling can lead to significant losses for traders who succumb to their emotions, triggering a cycle of regret and further impulsive actions.