Over the years of my trading and investing career, I've seen many individuals that ended up losing large sums of money because of their approach to managing risk. The Cowboys took unnecessary risks without truly analyzing the consequences, and the risk-averse ones let go of many golden ticket investments in an effort to simply minimize risk. Becoming a successful investor is a synonym of being excellent at managing risk! There are many different strategies and theories behind risk management and how it should be applied to different types of portfolios and asset classes. One of the most common approaches for multi-asset portfolios is to reduce the correlation between sectors, asset classes, and even regions. Imagine owning a portfolio focused solely on stocks of car manufactures in Europe and realizing that the US government will increment taxes over al cars produced outside of the US, I can assure you don't want to be that person. Information and research is bliss for investors, take your time analyzing properly an asset before buying into it. Warren Buffett used to say that no one should buy a stock they wouldn't feel comfortable owning for ten years. Take your time, it is better to make a small group of decisions and purchases than simply buying a little of everything in a portfolio.