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How to Manage Your Money When the Stock Market Drops

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When Lauren Simmons was 22 years old, she became the youngest full-time female trader on Wall Street, and the second African-American woman in that role in New York Stock Exchange history.

Simmons has since left her job as an equities trader to focus on her entrepreneurial endeavors and to host the podcast, "Going Public." "I'm taking what I learned to help young people have intimate conversations about how to make smart financial decisions," Simmons wrote for CNBC Make It.

Her expertise is certainly needed. The second quarter of 2022 has proven to be particularly volatile, with interest rates on the rise and more increases expected from the Federal Reserve throughout the year. Inflation is driving up the costs of consumer goods, and 81% of adult respondents said they think the U.S. economy is likely to enter a recession this year, according to the CNBC + Acorns Invest in You survey, conducted by Momentive. 

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In a volatile stock market, when there's a large dip on any given day with wide fluctuations in your portfolio value, many investors may feel compelled to sell. But Simmons cautions that investors should think twice before taking an action that they may come to regret.

Watch the video above to hear sound investment advice from Simmons — and learn how best to respond to a dip in the market.

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CHECK OUT: The 7 levels of financial freedom, according to a self-made millionaire — 50% of U.S. workers are at Level 2 with Acorns+CNBC

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

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