It's really a good question, one of those where you're with friends who have no idea what they're doing...
Pay attention to the example, with $100 make your investment, how do you execute it:
There are many options, but let's just start with two (only) as an example.
1.-You take the $100 and put it in a spot only at a return of 20%.
2.-You diversify $100 into investments of $5, with a return rate of 20%.
Option 1 will depend on when it is executed, and you may even have a negative value of up to 70%
.
Option 2 is executed every minute, every hour, every 24 hours, etc.
Then, I ask you, in which one do you have more chances of winning-losing.
Regardless of these results above on the losing side, nothing! should affect your finances, (or Peace of mind) your savings or destroy you mentally.
It is a bad habit to believe that an investment should always have the stigma that if no returns, it mean "dying."
So, you should operate within a comfortable loss range, the thing is that for the vast majority this does not happen, losing $100,000 should affect your finances in the same way, as it can affect others losing $1000, $500, $100.
It is a risky investment, losses are normal.