Fear Uncertainty and doubt (FUD)
FUD is the feeling of uncertainty, it usually follows a sudden price drop.
It is often artificially manufactured through the manipulation of news and social media.
It can cause people to panic sell their investments - taking substantial loses.
“In investing, what is comfortable is rarely profitable.”
– Robert Arnott
It is important that your investment strategy doesn't allow you to be emotionally swayed. Every market has ups and downs and if you follow the herd, buying only when emotions are positive and selling when there is fear, you will lose money.