How to protect your portfolio from loses

How to protect your portfolio from loses: The method used for screening your portfolio from crashing in monetary value is called stop-loss method. The success of portfolio is embedded in the selection of stocks that comprise that portfolio. Selection of mono-sector, single-class, penny stocks can be risky because of unfavourable government policies a times. Thus a mix of various sectors and different classes of stock can serve as a shock-absorber for the portfolio.