Risk management is a core part of financial planning. Every investor, whether holding Apple, Amazon, or Tesla, needs strategies to preserve capital.
## Key strategies
– **Diversification:** Cover tech, healthcare, and energy.
– **Stop-loss orders:** Limits downside.
– **Hedging with options:** Use puts on companies like Netflix or Nvidia.
– **Safe assets:** Balance with U.S. Treasuries, gold, or REITs.
## Benefits
– Keeps investors in the game.
– Reduces emotional stress.
– Stable portfolios perform better over decades.
## Examples of risk events
– Diversified investors survived.
– 2008 crisis: those with bonds and defensive stocks fared better.
– Balanced portfolios weathered the storm.
**Conclusion**
Risk management is as important as clearfield stock selection. Investors who diversify with Apple, J&J, ExxonMobil, and bonds are able to recover faster.
