Diversification for small portfolios

When we talk about selling options in the form of strategies like the¬†short Strangle, we often start with the profitability of the trade. When was it particularly profitable? When should we maybe reduce trade size? How does buying protection affect that profitability? And while these questions are all important, they are nothing without an underlying diversification in a portfolio of […]

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The Importance Of Diversification

Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries and other categories. It aims to maximize return by investing in different areas that would each react differently to the same event. Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals […]

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