Diversification is definitely the key to a healthy portfolio. However, diversification is for the buy/hold long term investors.
What if you’re a day trader or swing trader? Well, it’s easy to ‘diversify’ because everything looks tantalizing to trade in like they are looking at real money casino online. But in all honesty, this becomes more of an obstacle than rewarding.
Here’s the thing, there are soooooo many things to trade that it can literally do your head in. When you invest long term, you never want to have all your eggs in one basket. You want to have a little bit of this and a little bit of that because you want to make sure you are not relying on one thing to bring you money.
But that’s long term – the buy-it-and-leave-it – investing. And it makes perfect sense.
However, day trading and swing trading are totally different.
If you start to trade, let’s say, two different sectors (i.e. energy and technology) you’ll need to keep up with all the news and activity for TWO sectors. Plus you need to keep up with all the stocks in those two sectors and their charts and any other noise that can surround them. Who has time for this???
Or how about dabbling in stocks and futures. Again, now you need to focus on two things at once, and they are so different, with totally different charts to follow and in the end you become scattered rather than focused.
It’s kind of like a three-ringed circus. So hard to fully enjoy each show. That’s why Cirque de Soleil works better – it’s one ring, one show and you get to immerse completely in it!
But don’t get me wrong – you definitely can and SHOULD trade in different arenas. Just do it one at a time. For example, one week focus only on the entertainment sector. Study the hell out of the shakers and movers (stocks) in this sector. Trade those. Then the following week move on to a different sector, if you want.
Once you have your trading plan in place with your indicators and charts, you can use that across the board or just head to www.cinemacasino.com. But do you really want to struggle keeping up with two or three completely different markets at the same time. I certainly don’t! So specify however you want – each week a different sector/market/arena, or each day or each month. It’s all about having fun.
So let’s see what are the different circuses (I mean markets) to play in!
These are for the most part the major leaguers. There are always other things to invest in, but start here. Once you read about each one and decide which you want to narrow your scope in then decide what you feel most comfortable with.
And with time you might end up sticking to just one. You never know. But before you commit to ‘Your One and Only’ get a taste of the others. The amount of work and discipline is the same no matter what you decide to put your hard earned cash into.
At the end of the day it’s your money, your passion – so choose wisely!
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