When you find a good trade, do you use various securities to express it or do you just choose the security you think will perform best? For example, if I think inflation is coming down the road, I would decide to invest in gold. I could either buy a gold etf or buy gold miners, physical gold, gold futures, etc. This is an answer from a book (Inside the House of Money) "Unless I can see compelling reasons why a position should be diversified, I believe you're fooling yourself if you have a lot of positons on. The more positions , the more potential for loses...." I would argue that the only way to diversify a trade would be to invest in different securities or is this not necessary as long as you are making uncorrelated bets with the rest of your portfolio?
How do you find a good trade? Don't you do your analysis based on something that is tradable (e.g. stock, index, ETF, etc.)? If so, would you make this good trade on the object under analysis? You wouldn't see GS being a good trade but then go to buy AAPL, right?