Learning how to take risks in your life is a key skill in achieving success throughout your entire life. Every successful person in all areas of life has taken some risk at some point in time. There is a big difference between taking a risk and gambling. Many people are not able to distinguish a significant difference between the two. We are going to talk about the difference between each of these things so you can understand them in detail. From now on, make a commitment to yourself that you only take calculated risks and not gamble with your life or your money.
We all have heard stories about people who go to casinos while they’re on vacation, mainly in Las Vegas. Las Vegas is known for the millions and millions of dollars that people lose each and every year because they have an addiction problem. This addiction problem comes in the form of gambling with money that they really do not have to spend or lose. It is sad and unfortunate, but many family members gamble with their life savings or their child’s college tuition money. Gambling has become a serious an addict of the problem in our country today.
A personal friend of mine that I have known for a few years now has always been a saver and a diligently hard worker since the first day I met them. It was only six months ago that I heard a story about my friend losing all of his money at the racetrack. Deep down, the person had an addictive personality that led them to continually gamble, and eventually lose all of their money. This is something you do not ever want to have happen to you.
Taking a calculated risk is completely different than gambling. When you take a calculated risk, you are making an educated guess based off of a set of rules and information that you follow. For example, professional stock traders go buy a set of rules whenever they are placing a trade. They know exactly when they will get out to if the trade goes wrong and they stick to their rules. They have a calculated amount of money that they are willing to put at risk and lose that will not damage their portfolio. This is called taking a risk, but it is a calculated risk. Emotions do not have anything to do with taking this calculated risk, it is all based off of logical data.
Many people who gamble are emotionally addicted to the process. People who take calculated risks only use their logical thinking part of their brain. Daniel Goldman calls this emotional intelligence. This is a key skill and learning what the differences between gambling and taking a risk.