The quote below can be found here. I want to know what professional traders think of it? Do you diversify and how do you diversify? Do you diversify through different asset classes like FX, commodities, equities, real estate...etc, or do you diversify through different strategies?
It would be interesting to get different perspectives, personally I diversify on both the asset class criteria along with the investment strategy criteria, I am a big fan of diversification!
P.S. I consider trading in all its forms an investment strategy.
The “simple is better” idea is not limited to asset class diversification. I think it also extends to diversification by investment strategy, like relative strength or value or low volatility. There’s an underlying logic to it—simple is better, because simple is more robust.
It would be interesting to get different perspectives, personally I diversify on both the asset class criteria along with the investment strategy criteria, I am a big fan of diversification!
P.S. I consider trading in all its forms an investment strategy.