Did you sell stocks during this week's market fluctuations? Here's when to re-enter the market.

• This week, the U.S. stock market experienced volatility due to Russia's invasion of Ukraine, potentially causing panic selling.
• Research suggests that investors may miss out on future gains if they do not reenter the market after selling.
• Experts suggest using dollar-cost averaging, lump-sum investing, or a combination of both to re-enter the market.

If you regret selling your stocks during this week's market volatility, experts advise that you are not alone in your feelings.

The U.S. stock market experienced fluctuations on Thursday due to Russia's invasion of Ukraine. The dropped by 2.6% before closing with a 1.5% gain, while the recovered from a 3.5% decline, rising by approximately 3.3% in the same session.

Research from the Massachusetts Institute of Technology suggests that getting back into the market after panic selling can be a challenge for some investors.

Despite not investigating why some investors are more likely to engage in impulsive sell-offs, the research revealed a concerning pattern: A significant number of panic sellers do not reinvest following a cash withdrawal.

According to a MIT research paper, more than 30% of investors who sold their assets during previous market downturns did not return to the stock market by December 31, 2015.

Those who exit the stock market and do not re-enter may miss out on the recovery, as the best returns may come after the biggest dips, according to research from Bank of America.

The company found that missing the S&P 500's 10 best-performing days every decade led to a total return of 28%. However, someone who stayed invested through the ups and downs may have a 17,715% return.

Letting a mistake in selling at the wrong time prevent you from gaining in the future is the worst thing you can do, according to Jake Northrup, a certified financial planner and founder of Experience Your Wealth in Bristol, Rhode Island.

Why panic selling happens

It is crucial to investigate the causes of the panic sale before rejoining the stock market, according to experts.

Northrup advised panic sellers to reflect on the event, their thought process, feelings, and what they can learn from it.

What do you think was the main factor that affected you?" he inquired. "If it was the volatility, perhaps you should reassess your risk tolerance.

If you can't handle market fluctuations, you may need to adjust your asset allocation, possibly reducing your stock exposure, based on your circumstances, he suggested.

Northrup advised that if individuals do not experience a change in their core values, goals, and reasons for investing, they may not need to alter their strategy.

Teresa Bailey, a CFP and senior wealth strategist at Waddell & Associates in Nashville, Tennessee, stated that someone who sells in a panic may have a near-term need, which may have intensified their fear.

Reentering the stock market

Experts advise that although reentering the market may be beneficial in the long run, panic sellers frequently experience anxiety about the appropriate time to reinvest.

According to Bailey, being correct twice is challenging because it's hard to determine the right time to sell and reenter the market.

"Amplifying emotion is common when trying to avoid making a second mistake while getting back in," she stated.

Bailey advised that panic sellers should not wait for assets to decline again before reentering the market, as this may prolong their time out of the market. Instead, they should cash out based on a short-term news event and jump back in.

A common investment strategy is dollar-cost averaging, which involves investing a fixed amount of money at regular intervals.

Although research suggests that investing a lump sum earlier might result in higher returns, dollar-cost averaging can help prevent impulsive investment choices.

Northrup stated that individuals who have panic sold may be more emotional when it comes to investing.

If someone is scarred from volatility and misses out on gains, it can be really challenging, he said.

Combination approach

Bailey suggested that investors could combine dollar-cost averaging with a lump-sum approach, but this may require professional guidance.

She said that they may reinvest for eight to 10 weeks and increase the amount if the market declines during that time.

The strategy could enable an individual to accelerate their schedule and re-enter at a lower price point.

It's crucial to learn from past errors and adhere to a long-term investment strategy.

Bailey stated that, through time, it is evident that if you maintain your investment, your financial pot will expand.