The Importance of Diversification in Trading

I think sometimes people get caught up in the idea that you have to have this perfect number, but you started with a very small amount. Have you ever seen people that start with huge amounts of money and don't make it? Oh, absolutely. It doesn't matter if you start with too small. You can't create a properly diversified portfolio. That is more difficult. If you're not doing the right things, it doesn't matter how much you start with. You could be JP Morgan and you could lose billions. So it's just much harder to employ diversification to control risk with small amounts of money.

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