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?