March 8 (Wed): USD/JPY (Account: Risk diversification)

Good evening?

Are you all diversifying your risk?

There is a investing proverb

「Do not put all eggs in one basket!」

.

However, I have seen many people who appear diversified but are not truly diversified.

・Pound short

・Plong short (Pound-Yen short)

This was common in the salon I was in before.

Those who trade FX tend to prefer currency pairs with high volatility.

Especially beginners….

「High volatility = easy money」

and many believe this misconception.

Therefore many people traded pounds, but

both Pound-Dollar and Pound-Yen trading together left many with unrealized losses on both sides.

Among them, those with sloppy money management faced truly dire situations.

・Honda long

・Nissan long

There are many like this, right?

People who claim to diversify by buying similar sector items.

This also looks diversified but isn’t truly diversified, is it?

Certainly, going all-in on one stock is less diversified, but…

If you want risk diversification, diversify properly!

・Pound short

・Pound-Yen short

※ Avoid overlapping risks

・Nissan long

・(For example) Takeda Pharmaceutical long

※ Diversify risk by separating by sector

By the way…

I aman individual-stock concentration trader.

I hedge risk, but basically trade with a single stock.

Reason, perhaps, another time?

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