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236: How to Profit and Protect in Any Market Conditions - with Tom Basso

Better System Trader

NOTE

Diversify Wisely: Seek Uncorrelated Assets

To enhance diversification in trading, assess your current portfolio and seek assets or markets that exhibit minimal correlation with existing holdings. Utilize exchange-traded funds (ETFs) to gain exposure to a broad range of sectors with a small initial investment, such as semiconductor ETFs, which provide inherent diversification through multiple company holdings. Additionally, explore various asset classes like commodities and cryptocurrencies to ensure a diverse portfolio; for instance, combining a semiconductor ETF with soybean contracts and Ethereum futures can create a well-rounded strategy that mitigates risk, as these assets are unlikely to move in tandem.

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