How To Control the Emotions of Investing in a Volatile Market


The stock market has been volatile for the past few years, and that trend doesn’t appear to be ending anytime soon. While investing in stocks can be a great way to build wealth over time, it isn’t for everyone. Even experienced investors get stressed and anxious when the markets are volatile. When the stock market drops, many investors panic and sell their shares at a loss. However, these are the exact moments that you need to stay the course and keep investing as it is almost always a great opportunity to buy more shares of your favorite companies at very attractive valuations. This article will explain how you can control your emotions while investing in a volatile market.

Set a plan and stick to it

Investing is more about the long-term than it is about the short-term. Therefore, you need to set a long-term plan for your portfolio and then stick with it through thick and thin. You don’t want to jump in and out of investments because you are trying to chase the markets. This is often referred to as “market timing”, and the data shows that it doesn’t work over the long-term. You want to stay invested through the ups and downs of the market and let compounding interest work its magic over time.

Recognize that the stock market always goes up over time

While the market may drop significantly in any given year, the data shows that it always goes up over the long-term. Since the market is a forward-looking indicator of where our economy is headed, there is no way that it can be anything but positive over the long-term. Therefore, when the market is high, it doesn’t mean that it is time to sell. In fact, it is often a great time to buy.

Don’t check your portfolio constantly

One of the worst things that you can do when the stock market is volatile is to constantly be checking your portfolio. This will put you at risk of making rash decisions out of fear and anxiety. Instead, you need to get into the good habit of checking your portfolio at least once a month. This will allow you to keep an eye on your investments without putting extra stress and anxiety on yourself. Your investment plan is a long-term plan. Therefore, you don’t want to be making daily or weekly decisions based on fleeting emotions. You want to make thoughtful decisions based on data, research, and long-term trends.


Investing is a great way to build wealth over time. However, it isn’t for everyone. You need to be able to control your emotions when the markets are volatile and be able to distinguish between noise and fact when it comes to information. You also need to have a long-term plan for your portfolio and be able to resist the urge to check it constantly.




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