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Accepting Market FluctuationsAccept that the market is going to fluctuate. It is going to go up sometimes and sometimest it is going to go down. Over the past century, the market has returned about 10% annually. This includes the booms, the bust, and the crashes. Accept that market downturns are out of your control. Something like the weather. Market flucuations can be triggered by a lot of different things beyond your conrol. When interest rates rise, investors may pull a ot of money out of the stocks and invest it in interest bearing investments like bonds. This doesn't not mean that stocks will be a bad investment. It may be a good time to buy. Politics often affect market fluctuations. Depending on the outcome of some elections, the stock market may rise or fall. Keep your eyes and ears on business news. Sometimes certain newsworthy evernts will trigger a sell off or rally in the market. The stock market participants have a tendency to over react to news of interest rate hikes, political changes and labor issues. Accept all of these points as a cost of doing business. It is your job as an investor to pick stocks that have great long term outlooks. These types of stocks will survive any storm. When the markets lowers the shares of great companies for no financial reason don't look at it as a setback, look at it as an oppurtunity to buy assets of a great business at a cheap price.
Avoid reacting to short term market fluctuations. You are not a stock trader hanging on the whims of the stock market; you are an intelligent investor on the hunt for undervalued assets that you can buy at bargain prices.
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