" Diversification means generally you think you will lose money and is a negative mindset."
Hedging.
A bit like an each way bet at the races, little profit in it but it sooths the mind.
Hedging can be very expensive.
I guess if you take a look at all one persons assets they are probably diversified sufficiently in the whole of their assets, ie:
A lot of people own their own property, have a super investment (Managed fund), money in the bank (Interest ) and trade shares.
So there is probably a lot of diversification going on but just not in the shares portfolio, which is fine really.