MYTH--"I SHOULD DIVERSIFY MY STOCK PORTFOLIO"

My answer to the question, "Should I Diversify my Stock Portfolio?" may shock you. I belive that Diversification is a way to protect YOU from YOURSELF. It is a means of minimizing damage to your account when you don't know how to pick stocks. Hopefully, at least one of your picks will make up for the losses in the others.

Let me ask you a question. If there were high probability that a specific stock was going to make a big move, why would you put your money in anything else?

I am not telling you that you should "put all of your eggs in one basket." Neither am I telling you that you should "invest ALL of your money in Stocks." Instead, I am telling you that you should focus (not diversify) your trading account into two to three stocks at any given time.

Focus on those stocks that have the highest probability of moving.

If you want to learn how to invest in stocks and how to manage your money to avoid losses, let Stock-Market-for-Beginners.org be your stock investment guide. This is a stock market for dummies site. Here, we KEEP IT SIMPLE!

For a more detailed strategy to manage your money.

Learn more stock market myths.

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