Bottom Line Money Master Vahan Janjigian Suggests One Way to Protect Yourself from Market Dips

    STAMFORD, CT, July 13, 2015 /24-7PressRelease/ -- Given the highly volatile stock market over the past few weeks, investors are thinking about ways to protect their portfolios. Vahan Janjigian, editor of Bottom Line's Money Masters Stock Report, in his latest blog entry at http://blmoneymasters.com/this-is-one-way-to-protect-yourself-from-market-dips-the-problem-is-it-can-backfire/ talks about a popular though risky strategy many are considering: - a stop order to sell stocks.

"I expect lots of investors to place stop orders in the coming days and weeks if market volatility continues to rise. Unfortunately, many of them will regret it," states Dr. Janjigian. Stop orders, a market tool that allows investors to automatically sell stocks if they reach a certain price, can help investors limit losses if a stock falls in value. But, it can also boomerang and hurt the investor if they use it on the wrong type of stock or at the wrong time.

Janjigian used an example of what the market did several days ago when investors woke up to a Greek tragedy--literally. Due to a failure on the part of Greece and the European Union to reach an agreement, the Dow plunged 350 points or almost 2%. The S&P 500 and Nasdaq Composite did even worse.

But Greece was not the only thing that made investors nervous. American investors are also worried about Puerto Rico's declaration that the island's $72 billion debt was not payable. This crisis, though less meaningful on the world stage, hits the U.S. closer to home.

These economic fears - and more- have people considering stop orders as a way to protect their hard-earned gains from further losses. But just like every investment strategy, there are tradeoffs.

Stop orders work best with widely-traded, highly liquid stocks that are relatively stable in price. That way, you don't accidentally sell a "good" stock just because it had a bad moment or bad day and then miss out when the stock bounces back. Similarly, they can backfire if used to try to limit losses on illiquid names characterized by huge price swings.

There's one more thing to consider. In the short run, stock prices do indeed go up and down. In the long run, they go up. So if you are truly a long-run investor, protecting your gains in every market drop is not something you should worry about.

"Even if the market plunges, as it did in 2009, it will eventually come back. All you need is patience. Stop orders may work the way you want them to much of the time or even most of the time...but there's no guarantee of that. Don't use them lightly!" advises Dr. Janjigian.

More information about Bottom Line's Money Masters Stock Report and Dr. Janjigian's expertise and insights are available at BLMoneyMasters.com.

About Bottom Line's Money Masters
Bottom Line's Money Masters Stock Report is a value-driven investment newsletter from the publishers of Bottom Line Personal, the #1 source for expert answers to life's many challenges. Money Masters editor Dr. Vahan Janjigian was the #1 rated stock picker tracked by Hulbert Financial Digest from 2002-2012. Bottom Line Personal, America's leading consumer newsletter, is published by Boardroom Inc. Hear more from Dr. Janjigian and learn more about Bottom Line's Money Masters Stock Report at BLMoneyMasters.com

About Vahan Janjigian
Vahan Janjigian is editor of Bottom Line's Money Masters Stock Report, former editor of the Forbes Special Situation Survey, and the stock picker ranked #1 by the Hulbert Financial Digest for the decade ending Dec. 31, 2012. Dr. Janjigian also serves as Chief Investment Officer at Greenwich Wealth Management, LLC, an SEC Registered Investment Adviser, where he manages portfolios for private clients in separate accounts. Dr. Janjigian appears as a guest commentator on various television and radio networks, including Fox, CNBC, MSNBC, and CBS Radio.

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