Besides being smart about your stock investments, you should protect the money your investments have earned. Protecting stock market profits means being on the defense. These tips will help:
Always try to have some extra cash on the side, no matter how tempted you are to be 100 percent fully invested; you never know when buying opportunities may show up.
Spread your money across several stocks.
Buy more of a down (yet solid) stock.
Even if you make what you think is the greatest choice in stock market history and still see the price decline, just wait; common sense takes over regarding a stock price over a protracted period. Long term, good choices go up and bad choices go down. (Investing in Stocks by Term explains the differences between long- and short-term stock investing.)
Use stop-loss orders, trailing stop orders, and limit orders.
Set up broker triggers.
Consider put options and covered call options.
Sell, if you absolutely must.
See also:
How to Invest Based on Stock Market Indexes
How to Sharpen Your Stock Investment Skills
Stock Investing for Your Personal Style
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Source:http://www.dummies.com/how-to/content/how-to-protect-your-stock-investing-profits.html
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