I think panic selling is the worst way Because this movement puts the investor in harm and destroys his profits. In such cases, panic selling should never be done 2. way much more profitable and reliable. Just follow the market and don't take any action. When you are sure then do it.
If a person panic, he's losing the asset which could make him wealthy in the future. Selling isn't bad, but if you panic because of fear of losing financially it doesn't need to put it all at risk. That's worst because when the right time came, you'll regret that bad decision you made after being panicked