JavaBeans, you sure talk as if you have the answers. Do you have any facts or data to back it up the benefits of divesification instead of what they taught you in a business school? Diversification works if you are trying to protect your capital but does not work if your main goal is capital appreciation. Where did you get the idea that diversification will provide above averge returns in the long run? I'd like to see that. If the portfolio is diversified properly and has a portfolio beta of 1, then it will perform exactly like the market--no better no worse.

If you use 3% of your portfolio on 1 stock, then you'll have 33 stocks in the portfolio and that does not provide the necessary diversification. That's what my professor told us in the portfolio management class.

You suggest people to try forex, futures and commodities and you assume that it provides limited risk and unlimited profits. That just shows your knowledge about forex, futures and commodities. You are so far away from the truth that it is not even funny. I have traded futures more than stocks and I can certainly say that you don't even know how futures work. The only think that has limited risk and unlimited profits is if you are a premium buyer but the probability of winning is so small and so infrequent that it is hard for a retail investor to make money.

I still don't undersand what you mean by, "Market makers just love to widen the spread on ppl like you- totally naive!"

To quote singing bowl, "Diversification, Efficient market and Random Walk Theory are few examples they make you learn in Business Schools. Knowing them sure makes yr grades look better not a portfolio." This is so true.

I have posted here long enough and every few months someone comes saying why we can't beat the market and we're playing a losing game. If you are one of them show us what works and we'll follow you.  Don't have a commie mentality.