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In order to win big, you’ll need to be disciplined and diversify your investments.
What Law of Large Numbers Says?
The law of large numbers states that if you bet $1 on each of 10 games, then out of the 10 bets you made, one should be a winner. If you bet $1 on 100 games, then out of those 100 bets, one should be a winner.
This means that the more bets you make, the more likely it is that at least one will be successful—even if none are successful in the short term.
Don’t be Afraid to Diversify
For example: say you invest $1000 in Company A and $1000 in Company B. Your investment is not balanced because all your eggs are in two baskets. Both companies could do well but they could also both fail. If another company becomes available that offers better prospects for success than either Company A or B (less risk), then it would be wise for your investments to include this third company too.
A portfolio is like a pie; there’s no need to keep dividing it into smaller pieces when bigger pieces will provide greater rewards. It’s always better to take less risk over time by investing in multiple projects rather than putting all your money behind one project or even two or three projects.