Today's video focuses on tips and tricks I follow as a long-term investor when stock prices go down and volatility remains high. Here are some highlights from the video.

  • Understand that investment portfolios are not all built the same. Mega-cap technology companies like Microsoft (NASDAQ:MSFT)Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), and Amazon (NASDAQ:AMZN) have dropped by only single-digit percentage points from their all-time highs. Then you have high-growth stock portfolios with companies like Sea Limited (NYSE:SE)Teladoc (NYSE:TDOC)Palantir (NYSE:PLTR), and Unity Software (NYSE:U), which have all dropped between 25% and 65% their from all-time highs.
  • Remember that the dip in prices can continue and last longer than anyone expects. For that reason, if I tend to buy the dip, I do it via a dollar-cost-averaging method. This protects me from getting too emotional if I accidentally bought in the early innings of the plunge. 
  • I try to find ways to increase the amount of money I can invest during these volatile times. There are two ways to do this: by decreasing expenses and by increasing earnings.

Click the video below for my full thoughts and analysis. 

*Stock prices used were the pre-market prices of Dec. 2, 2021. The video was published on Dec. 2, 2021.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.