
Diversification is your pain killer pill if it ever comes to losses. Traders with balanced portfolios tend to be more secure about their failures, manage risks better, and avoid dramatic shortages of funds. However, it can only reduce pain, but won’t cure it. Remember, diversification alone does not guarantee that you will never lose again or that you will build a fortune in a year; it works more as a shield, a personal airbag that may soften any stroke of bad luck, save your nerves, and let you feel secure.