Trim Losers and Add Runners Investors have a general tendency to hold loss-making stocks and set aside profitable stocks with smaller profits. Therefore losses continue to increase while profits are locked in. It is advisable to short loss-making stocks as they are seen as weak investments and rely on profits. Using Trailing Stop Loss can help make it more effective. Replacing weak titles with strong ones is also a good approach. Have DiversityInvestors should be spread across a wide range of stocks to have variation. This would allow for over-reliance on a single stock which could lead to huge losses if the stock suffers huge declines. Such shocks can be avoided by having a broad range of stocks across sectors and companies that add balance to the portfolio.4. Portfolio Objective A portfolio should have an objective and purpose and stocks should be added in accordance with that. You can build a portfolio around a particular sector which is expected to perform well in the future due to some economic or other factors.5. Selection of