You are more likely to avoid loss by making diverse investments, focusing on businesses you understand, and supporting companies that you are passionate about. Every person's preferences and risk tolerance is different. Investing in what you personally believe in, is a good signal of an investment that may be right for you.
What does diverse investments mean?
Don't put all your eggs in one basket. When investing in high risk investments, you can help reduce your risk by investing smaller amounts in multiple investments as opposed to a larger amount in one investment. That way, if the one investment fails, you still have several other investments that could succeed.