Market corrections are one of the few things every investor will face, yet they still catch many people off guard. Prices fall, headlines turn negative, and short-term fear starts to feel like long-term reality.

That is usually where mistakes happen. Investors who understand what a correction actually is, how often it happens, and how markets usually recover are less likely to panic when volatility rises. The goal is not to predict every downturn. It is to respond with a better process when one arrives.

What Is a Market Correction?

A market correction is usually defined as a decline of 10% to 20% from a recent peak. It is different from a bear market, and it is very different from a crash.

A correction is often a normal reset within a…