When markets get bumpy it is natural to feel stress because of the loss of control that investors feel. Like last year, the start of 2026 has provided volatility in the markets again. So how do you take back control? Here’s a few things that can help:

1 Don’t take on more risk than you can handle

Although this is intuitive, many investors can find themselves in a situation where their investment portfolio has higher risk than they should take. This often comes during a period when the stock markets have increased for a sustained period and returns are high. After a few good years, it’s easy to get the feeling that your investments will continue to grow every year and the “fear of missing out” leads new investors to stocks. When a market decline arrives, it can be more than some investors can handle. In addition to causing unnecessary stress, it can lead to damaging decisions such as selling stocks at the bottom of a market decline. If you invest within your level of risk tolerance, you can avoid this scenario.

2 Market drops are normal – have a plan that accounts for them

Declines in the stock market are not a rare phenomenon. If you look at every decade for the past century you will see that each decade has several negative years. Although the market direction is upward sloping, it is not linear. There are jagged edges of varying degrees depending on market volatility. When you create a financial plan, you will assume a reasonable average return that your portfolio will be earning, but each year will be different, and some will be negative. You can take comfort in the fact that your plan has already accounted for the negative period that you are experiencing, and your long-term goals are not impacted by the short-term movements.

3 Long term investors typically recover

If you are invested in a well-diversified portfolio then you will be able to ride out financially bumpy periods. Investors who stay invested for the long term will typically recover while the results can be mixed for short-term investors. If you jump out of the market trying to predict a decline (or worse, in the middle of one) then you need to determine when to go back in again. After that you would need to predict the next decline, and so on. Jumping in and out of the market is a gamble since it is essentially a strategy based on speculation.

4 Avoid the news

Watching the financial headlines is only relevant if you are an active short-term trader. If you are planning for long-term goals, then it is more harmful than helpful. As mentioned previously, your plan has already accounted for these times so reading a variety of headlines and opinions will only stir up the wrong emotions. If your advisor has a plan in place and has diversified your portfolio then you have already planned for regular market declines. It is best to tune the noise out since it doesn’t apply to your situation.

5 Set up automatic monthly contributions

If you are in the process of saving for retirement, then you will be contributing to your investments every year. Instead of doing it in periodic lump sum contributions, it is better to set up an automatic monthly contribution plan. First, it makes it easier to build the contributions into your budget, and it becomes a habit rather than a one-off event. Secondly, it helps to average out the purchase price of your investments. If you contribute once per year, then the price you buy at is dependent on whether you catch the market at a positive or negative time. If you break down the amount into 12 equal monthly deposits, then you are averaging your cost throughout the year. As the market goes through bumpy periods, you end up buying at lower prices with your new contributions.

In summary, if you are a long-term investor, volatile market periods are something that you should expect to experience often. They can create stress and emotions which often get amplified by the news coverage they receive. But, if you have set the correct fundamental behaviours in place, such as preparing a financial plan, setting up monthly automatic contributions and creating a diversified portfolio then you are well-positioned. You can never completely escape the emotions that market volatility creates but you can minimize them by focusing on what you have done rather than news headlines. This will help you feel in control rather than overwhelmed as you navigate through bumpy market periods in the future.