A trader fills orders Monday in the Standard & Poor's 500 stock index options pit at the Chicago Board Options Exchange.
Watching market numbers plummet can make investors queasy, but analysts say keeping a level head through volatility is the best course.
The Chinese stock market's troubles are leading to big questions about how much that country's problems will be a drag on the rest of the global economy. Data displayed represents volume of shares matched.Explanation of Market Volume Methodology.
Morgan Housel, a senior analyst with Motley Fool, says investors feel a similar impulse to stop the fall by selling off their stocks, despite the advice almost all analysts give: to accept — even embrace — the inevitable ups and downs of the market.
Housel, who studies and writes about the behavioral psychology of markets, says volatility prevents dangerous feedback loops in the economy.


Edelman says investors have lived through several crashes — including the 2008 financial crisis — only to see the market nearly triple in value from its lowest point.
He says some of those calls are coming from investors who want to put more money in the stock market because they see bargains. NOGUCHI: Housel studies and writes about the behavioral psychology of markets as a senior analyst with The Motley Fool. And yet, he says, even for him, it's hard to heed his own advice, which is to keep calm and accept, even embrace, the inevitable ups and downs of the market. HOUSEL: If we never had crashes in the stock market, if there was no big volatility, there would be no risk.
NOGUCHI: Edelman says investors have lived through several crashes, including the financial crisis, only to see the market nearly triple in value from its lowest point.


Some of those calls are coming from investors who want to put more money in the stock market because they see bargains. BRENNAN MILLER: If you're not really going through a market decline, you might say on paper, oh, yeah, no problem. NOGUCHI: And for those people, Miller advises thinking carefully about just how much exposure to the stock market they really want.



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