Trading and investing diversification

Trading diversification

It has been quite a while since I posted new entries on this blog. My trading and investing diversification and foray into new strategies has made it a bit difficult to post all my trades on a daily basis. I am now concurrently trading several strategies:

  • A short to medium term investing strategy on Forex using my Simple Ichimoku strategy, described here;
  • A long term Bitcoin investing strategy described here;
  • A long term Cryptocurrency strategy that is quite similar to the one I use on Bitcoin, only on an handful of altcoins. I will describe that strategy on the site soon;
  • A long term CFD strategy on selected tech stocks that I have yet to describe. Ironically, it is also my most profitable one so far;

So, why diversify my trading ?

There are several interesting aspects behind trading and investing diversification :

First, diversification spreads the risk

True, that’s an investing basic, although some would disagree, but trading Forex, Bitcoin and CFDs is high risk. So you might be happy with spreading the risk a little across different asset classes.

That’s especially true with totally uncorrelated assets, and I think you’ll agree that there is absolutely nothing that correlates Bitcoin or altcoins to the economy, stocks or any forex markets.

But above all, diversification is more fun

Let’s face it, trading the same strategy day in day out is boring. Diversifying makes it more fun. I have found that when I get a bit bored of trading Forex, I can turn to Bitcoin, or CFDs.

That way, I am not compelled to trade so much, because the simple fact of turning my eyes to another market or another asset class makes it more interesting. Since there is nothing common between Forex and Bitcoin, there is always something happening in either of these markets that’s worth a peak.

So you’ll be seeing more strategies, less actual trades

The available time I have on my hands to post about all my trades is getting less. So for now I am going to concentrate on describing and sharing my strategies.

I yet have to think about a good and transparent way of sharing my results so that you can follow their results.

I am not too sure there is any website that enables sharing trades made on IG platform (my CFD trading) or Kraken (Bitcoin and altcoins).

I’ll keep searching. Let me know of any good trade tracking website you would be using.

Stay posted and trade safe.

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