Create a map:

Improvisation or reacting in the moment is something a professional will never claim to be able to do consistently. Volatility, by definition, occurs due to confusion about the current environment. This chaos can and will trick your mind into inaction.

Since declines can come out of nowhere, every investor should have at least one game plan written down to be able to reference during turbulence. Company wish lists, ticker symbols, ideal price levels, long term investment thesis’, etc. The specifics don’t matter as much as that it’s information you feel is important. These details will help remind you why you want to make a disciplined purchase during an emotional moment. Write it down.

Look past the mess:

When you put money into a declining market, you are buying that investment’s future, not its past. Declines can last a long time and you will never buy at the exact bottom. You need to have the courage to hang in there in the interim. Identifying why you want the investment long term before you actually buy will give you the stomach to hold it for a while if you have to. From emerging technologies like 5G or solar energy to a long-term mega trend like internet commerce to just a basic understanding that things will eventually get better. You need to envision why you can be patient while all the confusion and volatility sorts itself out. That underlying confidence can make all the difference in the world not only for buying, but also for holding the investment going forward.

Less pain, more gain:

It’s okay to ease into a position little by little. Again, you’ll never get in at the exact bottom. Periodic buying can help alleviate the stress of getting the timing of the purchase wrong. If the investment moves lower, further purchases help lower your average cost while giving you much more balanced control of your available cash balance. Yes,