Patient investors will profit from risking a portion of their money. The cardinal rule of investing is: Protect and preserve your principal, For that put options and stop-loss orders can prevent stem the bleeding when the prices of your investments start to drop.

Diversify your portfolio- Investors who create deeper and more broadly diversified portfolios by owning a large number of investments, are eliminating unsystematic risks. Implementing well-respected portfolio management strategies and creating an appropriate mix of stocks, bonds, and cash would suffer a small percent of the loss.

Buy put options – you don’t want to sell off your stocks but you do want to lock in some of your gains, a wise choice to make is to buy put options. You’re convinced that its future is excellent but that the stock has risen too quickly and is likely will decline in value in the near future, to protect the profits you buy put options.

Let go of your need to control – Some investors can’t help themselves and panic when the market crashes. In that case, a financial advisor can be well worth the price, they can keep an investment portfolio on track during good times and who the market drops.

Other precautions that you can keep in mind are –
Reduce permanent capital losses.
Prepare in advance for a stock crash.
Time the market.
Sell call option

Happy Investing!