There is no guaranteed way to avoid losses in the stock market, but diversification is one strategy that can help manage risk. By investing in a variety of companies in different industries, you can reduce the chances that a decline in one sector will have a significant impact on your overall portfolio. Another way to manage risk is to limit your exposure to individual stocks and instead invest in mutual funds or exchange-traded funds, which offer diversification within a single investment. Finally, remember that stocks are just one piece of a well-rounded investment portfolio. Hold a mix of assets, including cash and bonds, to help weather market volatility.