Hijacked this comment from a previous poster... not sure where i found it.. but i have applied it to my investing and AT THE MOMENT it is working for me.
"Diversification is for those who have already made their fortune and want to keep it. If you are a wanna be High Net Worth investor then taking large calculated positions in high potential stocks is the best way to achieve it."
I'm sure if the market turns i will get my ass handed to me. Less diversification means you need to watch a lot closer, but i sleep well and look forward to market open the majority of the time..
