Diversification is great if you're clueless or don't want to watch your investments.  Buy yourself a few ETF's and ignore them, you'll do just fine, however if you are trading stocks, knock the diversification shit off if you want to make profits.

Think about it, you diversify so that when one stock goes down, hopefully your other stocks are up and you BREAK EVEN.  That's the strategy!  Breaking even!  That's f'n stupid!  Stop it!

It's better to get the bloody hell out of stocks that are sucking and get into your stocks that are doing well.  Use some trailing stops on the stocks that aren't doing well.  Limit your downside risk to 2-10% (depending on your bankroll) and get out of the clunkers and put that cash into things that are doing well.  When the clunkers hit the bottom of the well, take your profits from your good stocks and buy up the stocks that are beaten down so you can ride them up.

In other words, if Apple is going through the freakin' roof, why wouldn't you put most of your bankroll into Apple?  So that you can 'diversify' and watch the other stocks you own suck while Apple is flying up?  That's dumb.

Now, don't go putting 100% of your bankroll into one thing, that's stupid, but don't diversify for the sake of diversifying.  Invest in things that are going up and get out of the losers.  If you keep an eye on things, you'll do much better.

Invest in peace....