#PANIC SELL

The “panic sell” or panic sale in French, is a term used to describe a situation where investors massively sell their assets, often in a falling market, in a hasty manner and without thinking. This reaction is usually caused by a sharp drop in price, negative news about the asset or the market in which it is trading, or a combination of factors that create fear among investors.

Investors who panic sell tend to ignore the fundamentals of the asset in question, such as its intrinsic value or long-term potential, and are instead motivated by the fear of losing money in the short term.

The consequences of panic selling can be dramatic for investors who sold low and for the market as a whole. Indeed, falling prices can trigger liquidations as well as automatic sales for those who have placed stop-loss orders, which can create a downward spiral.

Panic selling is an irrational and impulsive behavior that you must know how to protect yourself from as an investor. It is important to keep your cool and not make hasty decisions in a volatile market. To do this, it is crucial to integrate risk management when taking positions, to know how to stick to them in the event of panic, while knowing how to adapt thoughtfully depending on the context.

Additionally, it is important to keep an eye on the asset's fundamentals, carefully weigh the pros and cons before selling, and remember that markets are often subject to short-term movements that do not necessarily reflect their evolution over a larger time scale.