Markets are on a roller coaster ride. Here's what to keep in mind as stocks whiplash

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Markets are on a roller coaster ride. Here' what to keep in mind as stocks whiplash investinyou (In partnership with acorns.)

Movements up and down can also be a good time to review your asset allocation. If you're worried about a big drop, you could rotate part of your portfolio into some less-risky stocks to protect from a potential market correction, which is a drop of more than 10%.and set yourself up for future gains, according to Abrams.

This is because when stocks decline from recent highs, they're trading at a discount and will likely recoup losses at some point. Continuing to put money in the market when it's down as opposed to selling is a great way to make sure you don't miss out on a reversal. Data shows that selling when the market falls can take you out of the game for some of the strongest rebounds.

 

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