Some risks can be diversified away and some cannot. Don't put all your eggs in one basket. Diversification creates offsets between good results and bad results.
Not all risks are created equal.Generally, if there is a greater risk, there is a greater potential for reward. And the wisdom goes in the other direction, that there are smaller rewards for smaller risks.
Once you decide what kind of investor you are, what your goals are, and what your comfort level with risk is, then you can decide how much you'll put your money in the way of risk.
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