Diversification good or bad?

[deaddog]

Diversification hides your mistakes.

 

[Will90]

Must for spreading risk. I think diversification is very important.

 

[Sid William]

Diversification hides your mistakes.

It does.

 

[Wolfe_tr]

All traders should diversify their portfolio. This is must to reduce the risk involved. One of the major prerequisites to manage money and trades well.

 

[deaddog]

All traders should diversify their portfolio. This is must to reduce the risk involved. One of the major prerequisites to manage money and trades well.

"Diversifying over a large number of stocks doesn't mitigate risk. In a bear market all stocks fall. The best way to control risk is to have a method of getting out of stocks in a down market."
Darvas

Look at 2008; diversification didn't help, every thing collapsed.

 

[Bree98]

Must for spreading risk. I think diversification is very important.

Yes, it definitely is. Every trader needs to diversify his trade well to minimize losses.

 

[deaddog]

Yes, it definitely is. Every trader needs to diversify his trade well to minimize losses.

Works both ways; It also minimizes profits.

 

[ionone]

"Diversifying over a large number of stocks doesn't mitigate risk. In a bear market all stocks fall. The best way to control risk is to have a method of getting out of stocks in a down market."
Darvas

Look at 2008; diversification didn't help, every thing collapsed.

then trade forex, not stocks
also "buy and hold" is not really a strategy. It's a trade off if you don't know how to trade, because stocks are bullish in nature

 

[deaddog]

then trade forex, not stocks
also "buy and hold" is not really a strategy. It's a trade off if you don't know how to trade, because stocks are bullish in nature

Buy and hold is a long term trend following strategy with no risk control.

 

[pixel]

Diversifying your funds into different broker can be very good process to avoid falling into the mistakes.