There are two opinions regarding diversification, good or bad maybe depending also on luck, one opinion said diversification is good, because we never know the future, if one investment gets fail, still left another investment maybe fruity, it's used for balance. Another opinion said, better focus on one investment type, because you cant do multiple jobs at the same time, focus and make investment growth What is the best one? it will depend on destiny.
Diversification in trading is essential and can be very beneficial. But you need to know how much diversification you need. Traders should diversify their money, not only among different brokers but also among different assets.
For balance portfolio diversification in different assets, I think will give more chances to learn, which asset gives the better yield and which one is the worst, now most countries look at crypto as an asset and not currency, there are so many big investors involved in crypto investment.
Not only diversification but along with portfolio reshuffling plays equal part. Time to time keep updating the portfolio for better returns.
It depends on how diversification is achieved and the type of trades that are made. Diversification does not guarantee a profit but can help to reduce risk by having more than one position. Traders can take advantage of diversification by having each position support the other with proper money management.
Diversifying unless you have a really large capital that’s too big to invest in one type of asset is foolishness. There’s no use of trading small lot sizes of many currencies and reducing your profits. These small trades will generate returns which are not going to have any significant impact on your account and will count as worthless.
This is a very difficult question atually. Some people believe that diversification is very good, it helps you to improve your risk management system, however I dont think so. Everything because diversification has plenty of drawbacks, the main one is that you lose the control over yor funds. It's very important to keep your funds under control, otherwise you will be able to lose everything you have. Some traders handle this task and they can keep their funds under control and keep them on various account under various objectives, anyway it requres enough experience and skills in order to understand how to rotate your funds correctly between all your accounts.
Yes, diversification is a good way to avoid risk. In order to generate income, we should invest in stable, lower-risk investments that can produce good returns for a longer period of time.
Diversification can be good because it can help traders to reduce risk. However, trading the currencies that you don’t really understand or are highly volatile can never be a good addition to your portfolio.