Diversification and portfolio management are key strategies used by traders to manage risk and optimize returns. By spreading investments across different assets, traders can reduce the overall risk of their portfolios and improve their chances of consistent performance, even in volatile market conditions.
What is Diversification?
Diversification involves investing in a variety of asset classes, sectors, or instruments to reduce the impact of any single investment's poor performance on the overall portfolio. The idea is to avoid putting all your eggs in one basket, thereby reducing the risk of significant losses if one asset or market moves a...