The eighth commandment of profitable trading is diversifying in multiple ways. Most people think they’re diversified just because they have five bucks, but no, they’re not at all. Nowhere near it. You’d want to have different strategies, markets, and time frames. In my program the Trader Success System, I talk about three different ways of diversification: designs, markets, and time frames.
Strategies means, you want to be able to make money when the market goes up or down and make money from dips in the market. Thus, there are different ways of trading to make money.
Markets means don’t just trade Australian stocks or US stocks. Trade multiple different markets because they all move a little bit differently. Don’t just trade stocks, try trading crypto and commodities. Different markets, because different markets bring better diversification.
Timeframes mean having some long-term and short-term strategies because sometimes you get great long-term trends, and sometimes you don’t. Therefore, having strategies over different timeframes also helps.
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