Even the most experienced investors get nervous when markets become volatile.
Red screens, gloomy headlines, and talk of market crashes can make it tempting to sell everything and wait for things to settle down.
But if your goal is to build long-term wealth, one of the most valuable skills you can develop is simply staying invested, even when the ASX feels unpredictable.
Here's how to keep your emotions in check and stay the course when volatility strikes.
Focus on time
Trying to predict market tops and bottoms rarely works. Countless studies show that missing just a handful of the best days in the market can drastically reduce long-term returns.
Instead of reacting to daily moves, zoom out and focus on your investment horizon, whether that is 10, 20, or even 30 years.
Sure, you might get caught up in a market selloff now and then, but you might also see the market race 20% higher before that selloff comes. And when a selloff does come, it is worth remembering that the share market has always recovered to reach new highs.
Own quality businesses
It is much easier to stay calm during market downturns when you own resilient ASX shares with proven business models.
Names like Goodman Group (ASX: GMG), ResMed Inc. (ASX: RMD), and Coles Group Ltd (ASX: COL) have all experienced corrections in the past, yet investors who held on have been well rewarded over time.
These businesses generate consistent cash flow, hold strong competitive positions, and benefit from structural tailwinds. They may not avoid short-term volatility, but their long-term trajectories tend to move upward.
Automate your investing
One of the simplest ways to overcome emotional investing is to remove the decision-making entirely.
Setting up an automated monthly investment, whether in ASX shares or ETFs, helps you stay disciplined through market cycles. When prices fall, your regular contributions buy more units, effectively lowering your average cost.
ETFs like the Vanguard Australian Shares Index ETF (ASX: VAS), Betashares Australian Quality ETF (ASX: AQLT), and the iShares S&P 500 ETF (ASX: IVV) make it easy to build wealth over time with a hands-off approach.
Corrections are opportunities
Market pullbacks can actually be your best chance to buy quality assets at discounted prices.
Investors who bought during the 2020 COVID crash have since enjoyed outstanding returns as markets rebounded. History suggests the investors who keep their cool in downturns are often the ones who come out ahead.
Foolish takeaway
Staying invested when markets feel uncertain isn't about ignoring risk, it is about recognising that volatility is part of the journey.
If you can maintain discipline, keep investing regularly, and hold onto quality businesses, you give compounding the time it needs to do its magic.
