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Lesson 1 of 2
Don't Put All Eggs in One Basket
Spread the risk
If you put all your money in one stock and it crashes, you lose everything.
Diversification = Owning multiple different stocks.
Example:
- ❌ Bad: 100% in Tesla
- ✅ Better: 20% each in Apple, Google, Tesla, Amazon, Microsoft
If one crashes, the others might hold up. Some people even buy "index funds" that own 500 stocks at once (like SPY).