"3. Don’t put all of your treasure in one boat. This is about as obvious as any investment advice could be. It was learned by merchants literally thousands of years ago. Several different investments, the more the merrier, will give your portfolio resilience, the ability to withstand shocks. Clearly, the more investments you have and the more different they are, the more likely you are to survive those critical periods when your big bets move against you."
I stopped reading after i read this part since it's the exact opposite off what guys like Warren Buffet and George Soros believe in.
"Diversification is a protection against ignorance. It makes very little sense to those who know what they're doing."- Warren Buffet
Most top trades don't get rich by diversifying their portfolios, they got rich by moving all in on something they know everything about. Of-course this isn't the case for everyone, when you have famous traders like Peter lynch who own 1000's of stocks. This kind of approach doesn't work for most people though, diversification is just a myth of modern finance...
"Diversification is garbage -- it's something brokers invented to avoid getting sued. You only need four or five good ideas in your life to get really rich if you avoid mistakes. And the one way to avoid mistakes is to stick with what you know. Then, when you see a major development in your area of expertise, you'll know better than Wall Street when to buy or sell."- Jim Rodgers
Or as Andrew Carnegie once said "Put all your eggs in the one basket and --- WATCH THAT BASKET."
It's the same Principe to succeed at anything in life, trading is no different....
