Panic Selling
Categories: Trading
See: Panic Buying.
Buyers didn't know why they owned the stock at $40 and $80 and $200; it never had any real earnings. Or maybe it did. And then the earnings that were supposed to be $7 a share ended up being a loss of 3 bucks, with the company musing about its own "liquidity," meaning that it would soon run out of cash. Whoops.
So now the buyers who owned it and had no idea why they owned it, other than that the chart "looked good"...well they're going to sell it at any price just to get out in a panic. And maybe at 12 bucks a share it's a good value.
Panics often create opportunity for those with cool heads. Wasn't there some poet who mused about "keeping your head about you when others are losing theirs," or something like that?
