Panic Selling

Panic selling these two words, we hear very often whenever there is huge dip in market. It may be share market, other commodity market or food markets. Much news about the panic selling we hear in crashing market and how many people losing their hard earned money? Now what are these panics selling and who these panic sellers are? Panics selling are selling which result out of fear factor which arises due to sudden crash in market. Last week there was a news of a share market investor losing 50 crore rupees in market and finally caught trying to do suicide. Panic selling can be done by anyone by a big, small or medium investor. Panic selling has some relation with the psychological structure and with the power of person to visualize the situation. Sudden crashes in the market send triggering response to the mind to sell. This trigger is different for different kind of people, for some it is small up and down in market and for others it is large scale up and down. There can not be any hard and fast rule for, who will suffer more or less from panic selling. However the investors who have more deep understanding of the market and are able to visualize long term situations are less likely to suffer from panic selling. Moreover to avoid panic selling it is advisable to take calculated risks and try to be away from greed. Make a detailed research before investing in market and must have advance plans for adversities. Investors should not react to what others are doing, but instead make their own assessments.
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