Staying invested during market volatility can be beneficial, an advisor suggests.

• Financial experts advise against making emotional decisions during stock market fluctuations to prevent hindering long-term portfolio growth.
• On Monday, U.S. stocks fell as part of a worldwide stock market decline caused by concerns about a U.S. recession. However, it is advised that investors refrain from making hasty decisions and instead focus on achieving long-term gains.
• Lee Baker, owner of Apex Financial Services, advised against making a hasty, impulsive decision that deviates from your financial plan.

Financial experts advise against making emotional decisions during stock market fluctuations to prevent hindering long-term portfolio growth.

On Monday, U.S. stocks plummeted as part of a worldwide stock market crash caused by concerns about a U.S. recession. The U.S. stock market decline came after Japan's Nikkei 225 experienced a more than 12% drop, its largest one-day loss since the 1987 Black Monday crash.

On Monday, the Dow Jones Industrial Average dropped more than 1,200 points but recovered slightly to 1,032 points, or 2.6% down, by about 3 p.m. ET. Meanwhile, the Nasdaq Composite dropped 3.9% and the S&P 500 lost 3.2%.

Lee Baker, owner of Apex Financial Services in Atlanta, advised against making a hasty, impulsive decision that deviates from your financial plan.

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Panic selling can 'crater your portfolio'

Studies indicate that some investors tend to sell in a panic during market fluctuations, only to miss out on the recovery when they keep their cash idle.

"Just as quickly as the roller-coaster ride back up, missing recovery days can crater your portfolio," said Baker, a member of CNBC's Financial Advisor Council.

According to J.P. Morgan, missing the 20 best days in the stock market from Jan. 1, 2003, to Dec. 30, 2022, would have reduced your portfolio returns by more than half.

Ultimately, staying invested pays off long-term because it's a loser's game to try to time the market, Baker said.

'Sleep better at night' with cash reserves

It's crucial to concentrate on manageable factors during market fluctuations, rather than broader economic instability, according to Douglas Boneparth, a CFP and president of Bone Fide Wealth in New York, who is also a member of CNBC's Financial Advisor Council.

This is the top priority that can help individuals rest peacefully at night.

Boneparth suggests keeping six to nine months of living expenses in cash, which can help stay the course after stock market dips. If cash reserves are low, it may be a good time to revisit plans to rebuild.

You could use some of the extra cash to buy discounted assets after a market downturn, depending on your goals, he said.

Boneparth stated, "I've never met someone who was unhappy about having extra money."