Know your goals, your time frame for achieving them, and how much risk you’re willing to take as an investor. Most investments fall into one of five asset classes that range from “conservative” to “risky.” Market timing is when you move your money in and out of equities to try and capture the performance highs and avoid the lows. It’s extremely risky, and even the most experienced investors get tripped up by it. If you sell your stocks during a down period, you may lose out on gains if prices go back up again. Keep in mind that historically, the stock market has recovered from broad slumps, although past performance is no guarantee of future results. Whenever you check your asset allocation, make sure your portfolio remains diversified enough to maintain a risk level you’re comfortable with for both short- and long-term investing. While diversification helps reduce risk, there is no guarantee that it will protect against a loss of income.