He advises investors to use risk management tools like stop-loss orders and to avoid over-leveraged trading to prevent total portfolio loss.

“so to avoid this type of crash, I think you should not grade too much. No matter how confident you are that the market will move in the direction you are thinking from here. Still you should use risk management. Like, keep a stop loss”

Investors should use an incremental approach by pyramiding into full positions rather than taking full positions at once, especially in difficult market environments.

“The right way to do this and the way that I would suggest folks who are following swing trader to do it is if we put on a full position really contemplate taking a quarter position. That's what I want to do. But then that would mean for every one alert we're going to have four because the right way ”

Investors who take excessive risks should consider handing control of their finances to an advisor or putting their portfolio on autopilot to avoid ruinous losses.

“So either you put your portfolio on autopilot or you hand the keys to an adviser or a family member or otherwise you're going to not going to learn your lesson until you get margin called to death and then you're broke.”