Trading stocks always has a degree of risk to it. There is no way around this. There are no sure things when it comes to trading.
If you want the bigger gains you have to be more concentrated on your trading portfolio. Trade in one stock and you take big risks, but have the potential for huge rewards. Diversify across multiple stocks and you water down the risk and the rewards.
In short, if you want the big gains you have to trade in one stock at a time. BUT you also have to trade for the big moves. When you identify such a stock you cannot be over-trading it for small profits. Your risk/reward ratio has to be at least 3:1.
Which then leads is onto which stocks to trade? You cannot be trading random stocks this way. You need to be ultra selective. Only one type of set up on one certain stock. Stocks that can go up 500%+, possibly split a few times, smash earnings and have a huge hyped following.
My stock set up is so selective I find just 2-3 stocks a year (some years just one) that fit all this criteria. But if you are trading in just one stock at a time for the 12 month+ moves that isn’t a problem at all.
The question then comes which stocks to trade this way? You need to find very high probability trades. Anything less than an 80% accuracy will get your trading account killed. Not only that you need to find stocks that have the potential to up a lot in the next 1-3 years and take your % out of the middle of this move. Ignore the hype, do not get greedy and stock to your rules.
Trading this way is a lot harder than it first appears. Very few people have the patience and discipline to wait for these set ups. They are far too eager to trade any old stock at any old time. And when they do get in they second guess their initial plan and ruin it. Only the very disciplined can successfully trade this way, which is less than 2% of the population.
Even when you find such a stock there’s a small chance things will not work out. And most traders will dump a method/system after one losing trade. For those that can take a longer term/passive view the rewards can be amazing. Roll into 3 trades before taking profits out and if all three are successful your returns can be staggering.