Portfolio diversification is the strategy of spreading investments across different assets, sectors, industries, and geographical regions to reduce the overall risk of the portfolio. The idea is that by holding a variety of investments, the overall performance of the portfolio will be less dependent on the performance of any single investment, reducing the risk of large losses.
Why is Portfolio Diversification Important?
1. Risk Reduction:
Diversification...

Entering 2024, Nvidia has shown an impressive performance, with its shares having risen by 14% as of Jan 16th. UBS analysts maintain that the rationale for investing in AI and affiliated firms will remain strong in 2024, with the potential for further reinforcement.
AI Revenue Forecasts to 15x Growth Between 2022 And 2027
UBS has revised its industry revenue forecast upward, projecting a surge to US$420 billio...

When starting out in options trading, it can be tempting to use similar strategies from stock trading. However, this could potentially lead to significant losses.
In this article, we'll explore why options trading requires a different approach and discuss techniques that may be more appropriate to this style of trading.
Options are not stocks
The first and most important thing to understand about options is that they are not stocks....