Do you need Diversification? or Stoploss is enough?

u poor displaced tool; i make 15k a week doing absolutely nothing but collect rents...u on the other hand are on income support and housing benefits...u know, one of the many pretendies hanging around here. u are boring man, thats the truth..nothing u can do about it, i know it sucks and u are all ugly and alone but heck u gotta accept your limitations innit.
Quote from bighog:

bitstream

Well, lets put just this one post with regards to your trading.

Pay attention and maybe even you might make some bacon. ..........Sorry to see you have a hard time believing others that try to help new traders.

You also someday might enjoy weeks where making over 15k is indeed satisfying. no more posts in answering your heartaches towards others. ....

:D watching a old Ron Howard movie of the good ole days. go to sleep ....:p
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Quote from Hook N. Sinker:

Sort of. Diversification is associated with the portfolio effect. The portfolio effect means that as the number of securities in a portfolio increases the portfolio volatility decreases.
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If and only if the correlation between the securities is less than one :) .
If the securities are significantly positively correlated, the value of diversification can be very limited.
If the securities are significantly negatively correlated, the value of diversification can be very considerable.

This is relatively easy to write out in mathematical form, but of course it's intuitive too.
 
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