Behavioural Finance

Panic Selling

Definition

What is Panic Selling?

Selling rapidly because of fear during a market decline.

Example in practice

The investor exits a diversified portfolio near the bottom of a crash.

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The tendency to feel losses more strongly than equivalent gains.

The tendency to overestimate one's knowledge, forecasting ability, or control.

The tendency to seek or interpret information that supports an existing belief.

Incorporating environmental, social, and governance factors into investment analysis or ownership.

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