Calming words for troubled times

•  Send feedback to Money Magazine

Many investors are doing the wrong thing, shortening their time horizons, trading faster. Commission costs are low, and you can make a trade with the press of a button.

But the more volatility increases, the more investors should lengthen their time horizon. A study by Dalbar found over the 20 years that ended in 2006, the annualized return for the S&P was 12%, while people who tried to time the market lost 2%.

NEXT: Susan Byrne