There is a good reason why financial advisors stress having a balanced,diversified portfolio – because you will always have losers. By being adequately diversified in the proper asset classes, you balance your risk and reward by distributing your funds in a way that are in line with your financial goals. As some asset classes will earn more than others, over time your portfolio will become unbalanced and require you to make adjustments to get back on track. Likewise, if your investing rules are to have $1,000 in shares spread across 5 stocks, your portfolio will also require some maintenance. As a result of some stocks increasing in value and others decreasing, you may need to sell where you experience gains in order to buy more shares that are experiencing loses and are still great stocks to own. These steps are often ignored, but should be a vital part to your investing strategy in order to maintain a balanced, protected portfolio.