Ep 114: Diversification: Should You Diversify & the Ways to Diversify
★ SUMMARY ★
In this episode we discuss diversification if you should diversify and the different ways to diversify.
The big picture and the goal behind diversification is to minimize the risk. You can diversify based on your overall portfolio such as real estate, stocks, gold coins, and stamps or you can diversify within your stock investments such as sectors, etfs, gold, options, etc.
In this video I will also share with you how to diversify based on positions, inverse positions, time diversification, ETF’s and options.
Within options we will cover strike price and position entry diversification.
If you reduce your risk by spreading it across multiple variables then that is the whole point behind diversifying. The purpose is so that when things go against you and do not move in your favor that you are somewhat protected or don’t get hurt as bad.
Posted at: http://tradersfly.com/2016/12/ep-114-diversification/
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