With today’s market changes, it is more important than ever for investors to develop and adhere to a long-term strategy. This strategy must be based on goals, personal circumstances, and risk tolerance. Those who understand this basic investment advice will be in a better position to ride out recurring market volatility.

The biggest obstacle for many to overcome is the desire to do something hasty just because it might feel better than doing nothing at all. Many investors sell when the market is low because of fear it will go lower. Others keep their investment after it has grown hoping it will go higher. 

Consider market fluctuations as a friend rather than an enemy. This takes the pressure off the immediate personal impact of market swings. Those who use a common investment technique called dollar-cost averaging expect market change without fear. 

Having said that, a market strategy that I recommend for many clients is putting the investments that they do not want to see daily fluctuation in into an alternative investment called a REIT, a Real Estate Investment Trust. This investment is typically a hard asset investment, non-traded, specifically one that would pay a regular monthly dividend and not fluctuate due to stock market volatility. 

With this regular dividend, you receive a monthly check and then dollar-cost average this into a mutual fund or straight to the stock market. With this approach, you can typically afford to be more aggressive since most of your portfolio is in the REIT. This type of investment you may need to meet certain qualifications to invest. 

Dollar cost averaging is when you invest a specific amount of money on a regular monthly basis. With this investment strategy, no specific timing is involved. Investors typically do this with some type of mutual fund or professionally managed investment.

Investors who decide to sell because prices are falling are merely locking in their losses and eliminating their opportunities to participate in any market rebounds. Don't let widespread fear knock you off your moorings. 

The Dow Jones Industrial Average closed above a record 14,000 on Oct. 12, 2007, but the party didn’t last long. By March 6, 2009, the Dow hit a low of below 7,000. During this time, many investors experienced a wave of conflicting emotions as the market soared and then sank.

The temptation for many investors is to buy when the market is high, betting that it will only continue to climb, and to sell when the market tanks, hoping to limit their losses. The speculation that drives market timing can often cause investors to get in right before a downturn or to flee before realizing potential gains.

Now is a good time to help ensure that your portfolio still conforms to your long-term strategy and to make only the necessary adjustments.

As an investor, you should rejoice when markets fall. Think about your own spending habits. How do you make a major purchase such as a Harley or that Mercedes? Once you have settled on the model, do you wait for the price to go up or down?

Don’t misunderstand; this is not the time to snap up stock just because prices have fallen. It's always critical to seek out quality opportunities through careful research. Any investment must be fundamentally strong and appropriate for your portfolio. During market volatility, though, such opportunities may be more reasonably priced.

Rough economic times are to be expected and you should prepare for them. The maxim “buy low, sell high” is great advice, but there is no way to accurately forecast the performance of the market. One of the best strategies may not be market timing, but rather simply time.

If it's been a while since your last portfolio review, now is a good time to check your progress and look for potential opportunities presented by the current challenges. With a long–term outlook on investing, perhaps time will help you achieve the goal of buying low and selling high.

Information in this column is not intended to be specific advice for anyone. You should use the information to help you work with a professional regarding your specific financial goals.