Tips on Protecting Your Stocks From Major Shifts in the Market

Protecting your investments can be quite a challenge in today’s economy. It’s important to figure out ways to protect your stocks from the dangers of a rapidly changing market.  Boosting your overall cash holdings can be an important part of preventing your stocks from plummeting in case of unexpected changes in the market.  The extra cash will make your portfolio less vulnerable, and protect the strength of your investment strategy. 

Another way to protect your stocks is to re-balance your portfolio.  This involves selling off any stocks that might have already experienced big gains in order to put your money into other money-making options.  Re-balancing your portfolio at least once a year will increase your chances of success with your investments, or even more frequently if there are big changes in the market. 

Buying hedged funds is another great way to keep your stocks and your portfolio protected.  These funds will be less vulnerable if the market declines, and help to protect the overall strength of your portfolio.  You could also consider including inverse Exchange Traded Funds in your investment strategy, that will keep your stocks safe by cushioning any losses when the market turns or changes unexpectedly. 

Short selling is another way to protect your stocks from plummeting.  Short selling is a way to cushion your gains by speculating on a security falling in value by a set amount.  You could also protect your stocks by buying puts, which are options that allow you to sell your stock for a preset price in order to protect your portfolio from major losses.