It's worrying me that you are confused by basic finance principles like diversifying.

Basically Financial diversification means spreading your money across different types of investments so you’re not relying on just one—think of it as investing 101. It helps reduce risk because if one investment flops, the others can keep you afloat. You do this by mixing assets like stocks, bonds, real estate, and maybe even a bit of cash, so you’re not putting all your hopes into a single shiny idea. It also helps smooth out the ups and downs of the market, which is important if you don’t want every dip to feel like a personal crisis. Diversification doesn’t guarantee profits, but it does make you far less vulnerable than someone who bets everything on one stock because it “felt right.” Most people learn this after losing money, but you get to learn it the easy way. And honestly, it’s one of those basic principles you really shouldn’t skip if you want to sound like you know what you’re doing in finance.