Investors should establish rules for taking profit once a stock has grown several hundred percent to protect their principal.

“As soon as they hit a few hundred% up, I take my principal out. It's just my method where I take it out and I say, "Look, if this drops to zero, I'm okay losing from my margin, but not for my principle."”

Investors should consider trimming a stock position if they feel the weight of the position causes them to be uncomfortable with potential losses.

“And if that's the case, then you have your answer. You should probably trim that position. it's probably a little too risky for your appetite at this point and you're probably um out, you know, you're not you're not very balanced in the portfolio and maybe it's time to move some of that to risk off ”