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system
if i have $1000 to invest in penny stocks online, should i diversify risk and invest in many of them or should i invest in just in one?
user
there's a grey area where investing and speculating cross. for some, the stock market, as in 10% long term return with about 14% standard deviation, is too risky. for others, not enough action.  say you have chosen 10 penny stocks, done your diligence, to the extent possible, and from a few dozen this is the 10 you like. i'd rather put $100 into each of 10 than to put all my eggs in one basket. you'll find that 3 might go up nicely, 3 will flounder around, and 4 will go under. the gambler mentality is if one takes off, you have a profit.  after the crash of '08, buying both gm and ford at crazy prices actually worked, gm stockholders getting nothing, but ford surviving and now 7x what i bought it for.  remember, when you go to vegas, you don't drop all your chips on red, you play blackjack/craps as long as you can, and get all the free drinks you can.
assistant