I’m about to turn what you’ve learned about diversification on its head. Just keep in mind that MY way of trading and investing isn’t for everyone. We all have different levels of risk that our accounts can tolerate, so keep that in mind…
But humor me here because even if this style isn’t for you, you will learn something about how some pros — and contrarians! — trade…
Because I’m going to challenge something that every financial adviser has been drilling into your head for decades — this whole diversification gospel.
Here’s what I’m seeing…
The traders making real money aren’t spreading their bets across 50 different stocks. They’re doing the exact opposite. They’re finding their edge and doubling down on it.
The CEO Mindset
Think about this for a second. Every CEO you know has about 90% of their wealth tied up in their own company. They’re not diversified at all. And yet, that’s how they built their fortunes.
I’ve met investors who took their Tesla (TSLA) Roadster deposits — you know, the $5,000 they put down for the car — and threw it into TSLA stock instead. Those guys are sitting on 400% gains while everyone else was buying index funds and earning 8% a year.
The traditional Dave Ramsey approach has its place, sure. If it’s money you absolutely need for rent or groceries, then yeah, play it safe. But if you can handle the ups and downs and have extra money lying around, concentration beats diversification every time.
Where the Real Edge Lives
I see this pattern everywhere. The most profitable traders I know keep going back to the same setups, over and over. It’s like Wall Street analysts who specialize in one sector — they don’t try to be experts on everything.
Even look at the crypto millionaires. They didn’t buy a little bit of everything. They picked Bitcoin or Ethereum when everyone thought it was crazy, and they loaded up.
The momentum stocks, the high-conviction plays — that’s where you build wealth. Not by owning a piece of every company in the S&P 500 (SPY).
Sometimes being a little crazy and going against conventional wisdom is exactly what separates the winners from the crowd.
The team at Lance Ippolito Trading
Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros.
You can only find him on his personal YouTube Channel — smash that Subscribe button! https://www.youtube.com/@LanceIppolito
And in his private Telegram channel: https://t.me/+-gVwEIwGJhplMTgx
Important Note: No one from The TradingPub team or any of its associated brands will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. 1 Bullish Signal Alone Flagged 8 Double-Digit Winners in the Past 60 Days
My most trusted bullish signal has been responsible for most of my incredible results this year.
And now I want to show you the names it’s already been picking up for bullish moves in Q4.
