Portfolio Diversification Explained

Let's talk a little bit about portfolio diversification.

Too often we find ourselves opening multiple positions within our portfolio, all of which tend to rise and fall with the stock market. When the market is safely trending upward, we feel confident and secure in the construction of our portfolio. However, a marker correction, such as that we are experiencing, can shake our confidence as we watch our account equity shrink with falling stock prices.

One of the concepts then we will want to incorporate into our financial planning is that of a portfolio diversification. This comes in many forms, but generally requires diversification among both markets and individual market sectors.

Portfolio Diversification Video

Utilize the link above to access a recent video on the subject of portfolio diversification. This video is the first in a series and I will follow-up with subsequent videos here on my blog.

Trade well!

Christopher Smith
TheOptionClub.com