Diversification has less of a place when a trader has talent. In short, heavy diversification is nothing more than a substitute for lack of talent. While there are appropriate times to diversify, throw your energies into becoming an overall winning trader. Realize that no action is, at times, the best action. Traders erroneously assume that if you re good, you ll always be able to find something to do or some stock to trade.
Most traders fail to see the benefit of knowing when to sit on their hands.
Know when to bow out gracefully. The astute trader understands that above-average performance is more a result of keeping losses small than making profits big. Therefore, being skilled at bowing out of the market at the right time is an integral part of successful trading. Don t ever make excuses they never made anyone a dime. Excuses are for losers.