Diversification Wins With Stocks

Everyone knows that putting all of your eggs in one basket will usually be disastrous, and diversification is good.  However, picking certain allocations for a portfolio can be tricky.  What has worked for me is to put 20-50 percent of my money in bonds and stable fairly high-yielding dividend stock funds.  Currently, my dividend stocks allocation is 23 percent the last time I looked.  This means I will make money in spite of how volatile the general stock market is.  I will never lose all of my money since any trading I do will be with just  77 percent of my money.

For example, last year I made 30% on my 401K portfolio by being safe with 23 percent of my money while I had 77 percent to trade with.  I made thousands of dollars on bitcoin through the bitcoin ETF called GBTC.  In fact, I even got a $339 dividend from GBTC as well as the capital gains.  However, bitcoin is presently dead for now because foreign countries are now closely regulating bitcoin, and hackers have taken away the appetite for many people in bitcoin since they don't want to lose their money.

So, what am I doing with the 77 percent trading and investing money in 2018?  First, I am involved in the electric car boom.  I own LIT which is a lithium stocks ETF.  I own cobalt stocks also because cobalt and lithium are both needed for electric cars.  In addition, I own TSLA and VLKAY because I am making money on Tesla and Volkswagon with their electric cars.

Secondly, I am making money on natural gas exports of LNG.  I own Cheniere Energy (ticker LNG), and I recently bought Dominion Energy (ticker D) because they will soon start exporting natural gas also.  I have not made any money yet on Dominion, but I believe it will soon happen.  So, these are some of my ideas about making money in stocks while having a safe dividend allocation as well.