Spread the risk out, always has plan B or even plan C. Don’t pin all your hope or profit on one possibility. That is why we (at least me) tend to buy mutual funds instead of stocks, but any story has the other side.
For many risk takers, big risk means big reward. They like to gamble around even with the bottom dollar in their pockets. They may hit the jacket pot or become penniless overnight. They don’t care. They just like that kind of stimulation.
For normal people, when you put all your eggs in one basket, you’d better watch that basket. Even if you spread your eggs in different baskets, the best practice is still to check out on them from time to time. We don’t have much to offer in this shaky economy. We can’t be more precautious.