What Is Panic Selling?
Panic selling is selling in fear, fast and without analysis, often near a bottom. It is driven by loss
aversion and herd behaviour, and shows up as Extreme Fear.
1
Fear in action
Dumping assets fast to escape losses.
2
Overshoots
It pushes prices below fair value.
3
Near bottoms
Capitulation often marks the low.
Source: CFGI
Stocks