™An investor who sells solely because a red price screen is alarming may act before checking whether the original thesis or cash needs changed.
Risk & Portfolio
Panic selling
Rapid selling driven by fear, often without a disciplined review of price, risk or original thesis.
Plain-English context
Put the definition to work.
Review the facts and cash needs, but do not use 'avoid panic' as a rule that a position must never be reduced.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — asset allocation and diversification