How I Stopped Stressing About the Market for Good

If the stock market has ever made you nervous, you're not alone.The volatility. The headlines screaming, “WORST DAY SINCE 2022!” The red arrows pointing down.It's not irrational to feel unsettled when you watch your account balance shrink. And it's not weakness if your first instinct is to do something — to stop contributing, to pull back, to protect what you've already built.But the truth is, those reactions — while human — are often exactly what derail long-term returns.In fact, a recent study from Dalbar found that the average equity investor has underperformed the S&P 500 by more than 3% annually over the past 30 years. Not because they chose the wrong stocks. But because they let emotion drive their decisions. They pulled out when things got rough, waited too long to get back in, and repeated the cycle again and again.That gap — between what the market returns and what the average investor earns — is the cost of reacting to fear.But here's the thing... you don't have to be fearless to be a good investor.You just need a system that removes your emotions from the equation. Something that works quietly in the background — even when you're uncertain. Especially when you're uncertain.That's why, if you're the kind of person who worries about making the wrong move, automation might be the most powerful financial tool you have.The Market Can Be Scary (But You Don't Have to Be Brave)Market drops aren't a sign that something's gone wrong. Even in years when the market finished strong, there were often serious drops along the way.Investors who stayed the course — who kept investing through the dips, who didn't pull their money out due to fear — were rewarded. The market, historically, has always recovered. The S&P 500's average annual return over the last 50 years sits around 10%, despite wars, inflation, recessions, and crashes.But you only benefit from those recoveries if you're still in the market when they happen.And that's where things get tricky. Because for some people, staying invested during a downturn feels counterintuitive. Even reckless.You tell yourself you'll pull out now and get back in when things "settle down." But research shows that rarely works. Morningstar data found that investors who attempted to time the market dramatically undercut their long-term returns (even if they only missed a few of the best-performing days).But what if you're someone who's likely to flinch when things get rocky? How do you make sure you don't have to rely on your willpower to do the right thing?You need automation.Why Automation Works (Especially When You're Anxious)At its core, automation is a money management strategy.You can use it to pay your bills on time. You can use it to grow your savings without thinking about it. And — yes — you can use it to invest, consistently and automatically, no matter what the market is doing.This matters because your finances aren't just a collection of accounts. They're a system. And systems are the backbone of good habits.When markets drop, even seasoned investors feel the pull to "do something." But here's what separates long-term success from long-term stress: People who automate their investments are far more likely to stay the course. They're not waiting for the "perfect moment" to buy. They're not pulling back when headlines get scary. They're not trying to guess what's going to happen next.Honestly, some of them probably don't even think about what's happening in the market. Because their system is making all the decisions for them.And in personal finance, that consistency matters more than almost anything else.- It's why people who automate their savings hit their goals faster.- It's why people who automate their bills avoid late fees and credit dings.- And it's why investors who automate their contributions tend to outperform the ones who try to do it manually — even if those manual investors "pay more attention."The Magic of Dollar-Cost Averaging (and Why It Works So Well When the Market Drops)When you automate your investments — say, by contributing a fixed amount to your 401(k) or brokerage account every two weeks — you're doing something called dollar-cost averaging.It's not a fancy strategy. It's not new. But it works.Here's how it goes: You invest the same amount of money at regular intervals, regardless of what the market is doing.- When prices are high, your money buys fewer shares.- When prices are low, your money buys more.Over time, this smooths out the highs and lows — and often results in a better average cost per share than if you tried to time it yourself.It's one of the only strategies in personal finance that actually benefits from market drops. Because when you stay consistent during a downturn, you're buying more shares at a discount — and those extra shares will be worth more when the market recovers. (Which, reminder, it always has.)If you want a system that rewards calm, rational behavior in irrational times? This is it.But here's the best part: You don't have to be calm. You don't have to be rational. Once you set up automation, you don't even have to be paying attention.Because once you set everything up, it just runs in the background — quietly doing the right thing, even when you're panicking, distracted, busy, or convinced the sky is falling.How to Automate Your Investments (So You Can Stop Worrying About Them)Automating your investments doesn't require a financial advisor or some complicated tech skills. All you need is a checking account, a long-term investment account, and a few minutes.Let's break it down step by step.Step 1: Choose your accountIf you're investing for retirement: This might be a 401(k) through your employer or a Roth or Traditional IRA you open yourself.If you're investing for general wealth building: Open a taxable brokerage account. Fidelity, Schwab, and Vanguard all offer solid, low-fee options. So do robo-advisors like Betterment and Wealthfront.Step 2: Pick a long-term investmentTo keep things simple, I recommend going with a low-cost, diversified index fund, like a total U.S. market index fund (VTSAX or FSKAX) or an S&P 500 index fund (FXAIX or VOO).Just pick one solid fund with low fees and broad diversification. That's it.Step 3: Set up automatic contributionsLog into your account and set up recurring transfers from your checking account (or paycheck, if it's a 401(k)). You can do this weekly, biweekly, or monthly — whatever lines up best with your income and cash flow.Even a small amount — like $100/month — adds up fast when it's consistent.Step 4: Commit to not touching itThis might be the hardest part. But it's also the most important.Once it's automated, your job is simple: Leave it alone. If you want, check on it once a quarter.But don't pause your contributions just because the market dipped.Don't pull out your money because someone on the internet said things look scary.And definitely don't cash out just because your balance is lower than it was last month.If you need a mantra, try this one: "Don't touch it."Some of my friends in the finance world used to joke that if I ever started an investment advisory, the name would be "Don't Touch It!" and every issue would be a variation of that same advice. Honestly? It might be the best-performing long-term strategy out there.The Best Investors Aren't Brave — They're BoringThere's this idea out there that successful investors are fearless.That they're the ones making bold bets, timing the market just right, buying low, selling high, always one step ahead.But most of the time? The best investors aren't bold. They're not even especially brave.They're just consistent. Disciplined. Boring.They set up systems. They contribute on a schedule. They ignore the noise.And because of that, they give their money time to grow — uninterrupted by panic, doubt, or distraction.But even if that's not you... even if you're someone who feels anxious about investing... you don't need to change your personality. You don't even need to be brave. You just need to take yourself out of the equation.That's what automation is for.Make the Most of Your Money with Professional InsightsWould you like practical tips and tools to help you navigate today’s economy? Zacks' free Money Sense newsletter cuts through the jargon and gives you actionable tips to help you save money, slash taxes and build a lasting legacy.From must-see investment ideas to practical budgeting strategies, Money Sense can help you grow your wealth intelligently. Subscribe today and start achieving your next financial goal! It’s absolutely free to sign up.Get Money Sense absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks