What are the advantages and disadvantages of trading/investing in single stock and more than one stock? Should I invest in single stock for quick profit?
Yes, if you have indepth knowledge of that stock and if you have calculated properly, then you can invest in it fully.But according to me, that should be for short term gains. But if you want long term profit with less risk, then you should always diversify. If you have 5 to 6 stocks in your portfolio and suppose 2 of the stocks are in loss, then also you will have profit. If 3 of it goes down then you may not derive profit but again there will be no loss either. And if 4 of the stocks goes down then you will book loss but that will be minimum.
Whereas if you would have invested in a single stock, and if that would have gone down then you would have made loss.
I guess choosing the tight stock is the art out here in share market.
Go to the smallcase website there you can find buy group of stocks as a package which they call Smallcase or you can create your own smallcase also.
Its always better to spread your risk across few stocks. We have discussed about this here - https://zerodha.com/varsity/chapter/risk-part-1/
I have already read that month ago… I think "more risk more return, less risk less return "
True. However, for the same level of risk - there could be different levels of return possible. Have a look at this topic here - https://zerodha.com/varsity/chapter/port-opt/
Thanks for your information