Nasdaq Correction: Here's How to Handle It

Investors have had to deal with volatility in the Nasdaq Composite (NASDAQINDEX: ^IXIC) for several months now, as fears about macroeconomic factors have pushed many stocks listed on the Nasdaq stock market downward significantly. After an early rise on Wednesday morning, the Nasdaq gave up its gains for the day and was down 88 points to 14,419 as of 11:30 a.m. ET.

The drop brought the Nasdaq's losses since its November 2021 high to roughly 1,800 points, or 11%. The decline of more than 10% met the official definition of a correction in many investors' eyes, and while anyone investing in the stock market shouldn't be surprised at a downward move of this size happening on a fairly regular basis, it has nevertheless become reasonably rare. Throughout much of the 2010s, the Nasdaq's big advance came without big pauses for consolidation.

As a result, many investors don't know how to handle corrections. As volatility picks up, though, it becomes even more crucial to be able to make rational responses to difficult market conditions.

Source Fool.com