Eight Tips to Safeguarding Your Profits Using Portfolio Managemen
Today, we are playing portfolio manager. With the S&P 500 and Dow below their respective 50-day moving averages and threatening to move lower, you need to adjust your thinking towards the stock market.
This means you need to review your portfolio and holdings. Stocks that have recorded strong gains should be targets for some profit-taking. For instance, if you doubled your money on a stock, then by all means, take profits on half of the position and let the remaining half ride as free money. You may miss out on some gains, but with the downside risk, I would rather take some profits than hold on for a few extra dollars. This is the type of risk management you should be following in this stock market.
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