Be active and Diversify

[Nat]

If you want to invest in stocks , diversification is crucial. The stock market is made up different sectors ranging from electronics to clothing . Each sector has its ups and down. Hence , diversification enables you to spread across your stocks options so that they wil have a sort of balance. This balance enables you investment not to suffer great fluctuations.

 

[HayKay]

I definitely agree with this. There's the need to always not focus on one market/sector because of performances; no two sectors perform same way at the same time - there's always one sector more lucrative than the other. The risk factor comes into play here as well

 

[frederick_9]

I wholeheartedly concur with this.
Due to performance, it is important to maintain a balance across markets and sectors; no two perform similarly at the same time; one is always more lucrative than the other.
This situation also involves the risk element.

 

[Nomad]

Diversifying means you buy stocks from company 1, company 2, company 3, etc. However, diversification does not stop there. I also include investing in other markets as well. if you are investing in stocks, you should diversify with real estate as well.