What really makes people to panic sell their financial assets?

[Kross]

There are some people that have invested in some financial assets, but before you know it, they have sold it. And most of the times, it is always a panic sale. What is the factor that always makes people to panic sell their financial assets and investments?

 

[Augusta]

Several factors can trigger panic selling in the stock market: Sudden market corrections

 

[Springtime]

Bad news spread in the market, war broke out, pandemic and natural disasters may all cause people to panic sell their financial assets.

 

[Suba]

What often triggers panic selling among novice investors is FUD (bad news) that spreads, creating fear, uncertainty, and doubt, as well as drastic market price corrections or crashes.

 

[Trush Jodie]

People that have low risk threshold would always panic sell with a slight downturn in the market. They always play safe.

 

[eLdavis]

For most people it is usually due to fear, and the lack information. Since there is no information about what to do next, they just sell.

 

[Nomad]

The main reason for panic selling is they fear the value will go further down and they want to withdraw before it is too late.