Technical/Fundamental Trading Course Learning to trade like Smart Money and Build Wealth in the Stock Market
Diversifying the stocks you own is an important factor.
Many confuse diversification as ‘buy something from each sector’.
Diversification in our minds is about the following:
For the growth stocks you own just have 1-2 stocks for each mega-trend.
- Don’t go ‘all in’ growth stocks.
- Allocate a % of your capital to defensive and value stocks. This will protect you when the cycles change.
- If you don’t believe in the future value in a particular sector e,g, Oil and Gas, simply don’t invest in it.
- Keep a spreadsheet to understand what % you have in any sector/trend.