Quote from: GreatArkansas on November 25, 2021, 12:18:29 AM

Quote from: VuSpark on November 24, 2021, 07:51:26 AM

All you hear about these Trading and Investing rules that " Dont put all your eggs in one basket " or " Diversify your portfolio "
(....)

There are also some people who are not believing here.
Their quote is "You don't need to diversify once you are in a good position and sized in", something like that.

Diversifying a portfolio is pretty good since this is applicable even you have a huge or small portfolio or capital.
But overall for me, the best is always "knowing or doing research first before putting your egg on a basket".

Diversification is a way to protect your capital in the case one of the markets in which you are invested goes down dramatically, this way even if you suffer some losses it is not something that will be impossible to recover from with the rest of the assets in which you are invested, however if your goal is to increase your capital then diversification plays against that, this means that those that have a large capital and that are already happy with it can use diversification, but those that have a small capital need to concentrate their capital instead in a limited number of assets to increase their profits.