Everywhere you look it seems as though there is some sort of advice on how to succeed in the stock market or how to invest wisely for long-term financial security. While some of this advice is undeniably valuable, it addresses how to get there but fails to mention what to do after those initial investment gains are made. TIE Institute trading strategies provide a great deal of insight on what smart investors do with their earnings while demonstrating how to protect those hard-earned gains.
These strategies are ultimately dependent on the nature of the marketplace, and while the market is still looking quite bullish there is some indication that cutting down on the stock holdings in your investment portfolio is wise once significant gains have been made. This reduces the amount of risk in the event that the bear market returns, but it is more important to consider individual investment goals when determining how much risk is appropriate as a part of an investment strategy. For some, a reduction of 10 percent is more than enough, while others will feel more comfortable with a 20 or even 30 percent reduction in their portfolio.
Of course, diversification is always vital to any long-term investment strategy, as this is a surefire way to protect any gains that you may have made during this lengthy bull market. It is hard to predict how the market will change and when things will begin to shift again, but protection is simple through the use of these useful strategies.