Myth No. 5: You need to diversify
You've been told that diversifying your investments means you spread your risk around. If one investment tanks, you still have money in the others to see you through.
But most Americans don't have enough money for that kind of diversification, and even if they did, it isn't the best strategy for them, says Chris Miles, "cash flow expert" at MoneyRipples.com.
"Diversifying is like buying many brands of TVs in case one of them doesn't work after a few months," Miles says. "Shouldn't we research it out first, then buy one TV?" Too many people throw money into things they don't understand or care about, he says.
"Find one or two things that you know a lot about and love … then invest," Miles says.
The "Turnaround King's" Cardone agrees. "Wall Street loves to perpetuate this myth because then you'll need them," he says. "I'm extremely good at a handful of things, and then I leave the rest alone. A professional ball player, for example, commits to one sport, not many sports. Focusing allows you to hit it out of the park."