three methods to guard against risks

by time news

Whether you are a seasoned stockbroker or a neophyte, it is always difficult to invest when the markets are at their peak. 533242521/Kateryna – stock.adobe.com

OUR ADVICE – The prowess of the CAC 40 once again shines the eyes of stockbrokers. But trees don’t climb to the sky. Individuals have a few cards in hand to protect themselves from disappointment.

Remonter ses «stop loss»

Traders have mostly been surprised by the strength of the upside in recent weeks. If this has not been done, it is a good time to raise its “stop loss”, these mechanisms which make it possible to trigger the sale of an action in the event of a drop, when its price reaches a certain threshold. “These tools are imperative when the course has exceeded the objectives that we had set ourselves”recalls Nicolas Chéron, independent analyst.

These mechanisms, well known to seasoned stockbrokers, make it possible to consolidate a gain, while continuing to profit from the rise if the stock continues to behave well. “You have to do it on part of your portfolio: 20%, 30%, 50% depending on the investor. We avoid losing everything if the market turns around, but we continue to benefit from the rise if the value continues to behave well”, says Alexandre Baradez, market analyst at the broker IG.

Rebalance your portfolio

The meteoric rises in the values ​​of luxury, banking, or certain small caps…

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