Diversification and Investment Options

Diversification is simply spreading out your investments to reduce risk of loss to your portfolio.

Some believe you can have diversification by investing in mutual funds.  The bottom line is this is still just a mix of stocks... And on top of that - a majority of mutual funds hold only a few heavy-weighted stocks.... A truly diversified portfolio should contain other forms of investments.

Stocks
Real Estate
Bonds
Forex
Businesses
Physical goods/materials

The mix you choose will really depend on your situation and your personal understanding of the investments.
Remember, with REIR investing, invest with good information, and the profits will follow.

If your main focus is on stocks, you can choose to split your holdings among the various market sectors to reduce your risk. These sectors include:

Basic Materials
Capital Goods
Conglomerates
Energy
Financial
Healthcare
Service
Technology
Transportation
Utilities

Disclaimer: I am not a financial planner, advisor, or accountant. The financial actions mentioned were only suited for my own risk tolerance, strategy, and ideas. Copying another's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.