Final answer:
Diversifying your approach to trading is recommended by financial investors as it helps reduce risk and potentially benefit from different sectors.
Step-by-step explanation:
Diversifying your approach to trading is not a terrible idea; in fact, it is recommended by financial investors.
Diversification means buying stocks or bonds from a wide range of companies instead of focusing on just one sector.
By diversifying, you spread out your investment and reduce the risk of losing all your money if one company or sector performs poorly.
For example, if you only trade one sector and that sector experiences a decline, all of your investments will be affected.
However, by diversifying across different sectors, you can potentially benefit from the success of industries that perform well.