What is Portfolio Diversification and Should You Diversify Your Stock Portfolio?

Posted at: http://tradersfly.com/2015/01/portfolio-diversification/

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13 COMMENTS

  1. Compared to your other videos, I didn't find this one very helpful. The main reason I see diversification can be useful is because allocating all of your resources in one area can increase the likelihood that a single event could cause one to lose a crippling amount. I found your example confusing.

  2. I am new to investing and I feel like there is so much to learn. But I do want to understand and be serious about it. I've heard that it is best to start when you're young. This is easier said than done because when you're young you don't make the same salary as your older co-workers, you have to start building your life by establishing your home, family, etc, put your kids through school, and still enjoy life. But I know that it is worth it when it is time to retire. Thanks for using food to explain what a portfolio is. It has helped me more than you know.

  3. Hello Sasha! It was a nice Comparison!
    By the way, when you diversify, do you take into account the direction/performance of that stock sector (Industry) or the overall Market (to invest in the same direction)?
    //For instance, assuming Facebook have a very strong technical pattern (or the right set up to be bullish) and excellent fundamentals to buy it long, with its sector (technology) in a bearish state and maybe the NASDAQ too… would u acquire this stock long ?

  4. Great video, but may I ask what your success rate is in the stock market?  50% or closer to 90%?  Do you make more money on trading stock or selling your -Books, DVD, Training etc . Sorry…there are way to many frauds on the internet.

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