Its hard to offer tips because everyone has different goals
For those who are agrressive traders/investors & want quick wealth accumulation, I will give my tip:
By personal experience I have found that it is best not to overly diversify.
If you want fast accumulation of wealth and have a moderate amount of cash in the markets, then I suggest the following:
*Stick to 3 or 4 stocks that are winners *Dont hold anything in the red! (I dont use auto stop-losses, I will sell a losing position if the TA indicates so) *If one of the 4 starts to move, increase your position in that one ... sell one of the stagnant ones (you can always get back in again) This will maximise gains quicker.
*Dont forget to take profits on the mover ... its easy to buy a lifting stock, but its a lot harder to SELL it! It is selling that makes us money not buying ... think about that.
I have followed this system for nearly 2 years now & got to a point where my portfolio value has risen by many multiples of the original value
So far, 2008 has has been even better than that.
It was a line by Warren Buffet that influenced me. Something along the lines of:
"Diversification is the persuit of mediocrity"
basically, by diversifying, we "average out" our portfolio winnings and losses. This IS the safer way to go, but leads to us just being "average!!"
I didnt want that .. I wanted to do above average, and do it fast. So I set myself to the task ... packed in my job ... studied the stuffing out of the markets, resources, metals, and stocks.
At this stage I have built sufficient wealth to give it all away now, but I have set myself the goal of finishing 2008. That will do it for me.
