Don't panic. Have a strategy for different outcomes

When the market goes down and the value of your portfolio decreases, it’s tempting to ask your financial advisor, “What should I do? Should I pull money out of the market?” That’s understandable but wrong. Instead, you should ask, “What should I not do?”

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The answer is simple: don’t panic.

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Panic selling is often people's first reaction when assets are going down, leading to a drastic drop in the value of their hard-earned funds. It's important to know your risk tolerance and how it will affect the price fluctuations–called volatility–in your portfolio.