That's a very common term in stock trading as well! Prices are crashing, and you try to make use of that opportunity to buy stock and make a profit when the stock rebounds. Then the price crashes further, the rebound is not gonna happen in the near future, and your fingers are a bloody mess on the ground...

Another panic reaction is selling off everything at the first sign of trouble. And some people hold on to doomed stocks for way longer than what makes sense (look up "Intel guy" on /r/wallstreetbets)

Day trading requires due diligence and nerves like steel, else you are just making somebody else a little bit richer.