Diversification Simplified

   Diversification.  Wow.  Big word.  Let me explain what this large word means.  Diversification is making sure there are different types of stocks in your portfolio.  An example is having stocks in different types of stocks so if one is doing bad the other might be doing well.  Have you ever got caught up in a craze (i.e. Pokemon or Star Wars) and use all your money in buying that one thing?  Sounds good then, but two years later it might be back in the dark next to your Barney the Dinosaur Music Video and Furby.  Or have you ever heard the phrase “Never put all your eggs in one basket”?  If you diversify your portfolio and one basket breaks, you only lose some of your eggs.