I'm not a professor, but this part I am very familiar with....don't worry about which one is the home run or missing "the next big runner". Doing that will make you impatient and trying to force trades (or at least I have done that myself and seen others do it). Research, and pick what appears to be a good chance of success. Don't be afraid to take a small gain either - they do add up as chart's display in the I-box clearly shows. The important thing is to try and avoid losses, particularly large ones. A few good solid trades at the bottom will open doors for diversification.
Profit is Profit....oh, and I agree 110% about not diversifying. At most, do two positions with that kind of capital IMMHO.