Breaking It Down: Let's Have a Conversation About Diversification
Welcome to 'Breaking It Down,' where we embark on an enlightening journey into the world of futures, commodities, bonds, equities and more! In this edition, we shift our spotlight to diversification.
Diversification is important for traders for several key reasons:
Risk Management: Diversification helps spread risk across multiple assets or markets. Since trend-following strategies are based on identifying and capitalizing on trends in various markets, having a diversified portfolio can reduce the impact of a single market's adverse movements on your…