How to Stay Calm and Confident During Market Volatility
The past few weeks have been a rollercoaster in the stock markets, with massive swings in both directions - sometimes within a single day. Investors were scrambling to make sense of fast-evolving tariff/global trade war developments while trying to filter real news from noise.
In times like these, people tend to fall into one of three camps:
1. Oblivion - These are the people who are not invested at all (pun intended). They’re on the sidelines and might feel lucky not to be involved right now.
2. Anxiety and fear - These investors follow every news headline. They feel nervous watching their portfolios move up and down, perhaps feeling stuck or panicky.
3. Calm and excitement - Some people stay calm or and even feel excited because they see opportunities in all the chaos.
When I worked in private banking, I remember some of my clients shared that their wealth was built during times of crisis and market volatility. Whether it was the Asian financial crisis in 1997 or the global financial crisis in 2008, they found opportunities when others were afraid.
While market downturns are uncomfortable, they often present the biggest opportunities - if you are prepared.
Market volatility can be your friend
When prices move up and down quickly, it’s a chance to buy quality investments at a lower price - if you stay calm and stick to your plan.
That doesn’t mean you should jump into trades quickly. It means you need to understand your investment goals, follow your strategy, and avoid making emotional decisions.
Not all market corrections are the same
Sometimes markets change because of big shifts in the economy (structural changes), shifts in specific industries (sector changes), or just changes in how people feel (market sentiment). These changes can be permanent, temporary or short-lived.
Current trade policies and tariff developments create uncertainty, trigger emotional reactions, and cause short-term price swings - these are market sentiment drivers. But depending on how significant or long-lasting the tariffs are, they can also become structural changes.
For example, a prolonged trade war between major economies can reshape global supply chains, change company strategies, and impact economic growth over time. So, they can evolve from short-term sentiment shifts into long-term structural shifts.
What if you’re new to investing?
If you’ve never invested before, this is a great time to start learning.
Find out what your local market index is (e.g. in Singapore, it’s the Straits Times Index), and also a global one (like the S&P 500 Index). Observe their prices each day.
Follow the news and observe how events impact stock prices (up or down).
Learn a few financial and market jargon - little by little, the stock markets will start to make more sense.
What if you’re already invested?
Here are some pointers to consider:
Review your investment plan. Stay on course. You can shift to a more conservative approach—e.g. instead of investing $10,000 in one go, break it into 2–3 trades to give yourself flexibility if the market drops further.
Stay cautious but stay invested. Markets can turn quickly. If you exit completely, you may miss the rebound. It's better to keep your eyes on your long-term goals while choosing safer, conservative stocks or ETFs.
Manage your risk. Protect profits and limit losses, in line with your risk profile. (In my coaching programs, I teach clients to use automated trades for this very purpose.) Rebalance your stock portfolio to ensure it continues to match your desired risk profile.
Tune out the noise. Not every headline demands your attention. And if markets are especially volatile intraday, it’s okay to skip some trading sessions and wait until things stabilise.
In the chaos that occured in the past weeks, I've cautiously picked up some dividend-paying stocks in the local market when prices fell drastically. The market correction was mainly sentiments driven and based on fear and uncertainty. Some quality stocks have fallen in price, pushing their dividend yields higher. For long-term investors, this can represent a stock market “sale.”
Market volatility can be overwhelming - but it doesn’t have to derail your financial journey. Whether you’re watching from the sidelines or already in the game, this is a great moment to strengthen your investment knowledge, clarify your strategy, and act with confidence.
You don’t need to predict the future - you just need to be prepared for it and be decisive at the right time.
How do you usually respond during times of stock market volatility? Do you wait, worry, or see opportunities? I’d love to hear your thoughts - or any tips you’ve found helpful for staying grounded during market volatility!