Humans are risk averse and therefore afraid of placing bets. However, there will always be many situations in life where we have to take a gamble. In order to make better decisions, we should encourage ourselves to take chances and practice placing bets.
Whenever I’m in a situation where I could place a bet, but am hesitant to do so, I always think of a story I heard on a podcast earlier. I think it was Annie Duke (or some other Texas Hold’em player) who said that professional poker players will bet on just about anything when they’re not playing. For example, when they’re sitting in front of the door drinking and talking, they’ll bet on the next car that goes by, whether it’s blue or black. This is done not because they gamble too much, but because betting is a skill that needs to be honed, and with practice, they can improve their intuition, stabilize their minds, and develop better strategies. (Sorry no source found)
Why bet?
Going back to the scenario of our common man, why is it important to practice placing bets as well?
First of all, risk aversion leads to an uninteresting and hopeless life. If you keep getting pushed around by life, even if everything is going well, you’re more than likely not going to have a good time because ofeach state has undergonerelationships and achieve a below average quality of life. Secondly, due to a lower risk appetite, when important decisions need to be made, you tend to listen to others or go with the flow and make choices that don’t really suit you. Then, because the current world is changing so fast, the route of studying hard and working hard, which has been applicable for the past 100 years, no longer allows us to live a stable life. The only way to adapt to change through change is to keep taking risks, keep challenging and keep placing bets.
And, people who like to place bets are curious, brave, passionate, and often have above average personalities because they don’t play by the rules.
Placing a bet is not the same as ignoring the risk
According to the barbell strategy mentioned by Taleb in Antifragile, you should be extremely conservative with your life and health, as well as your own family and possessions, and then you can be extremely risky with anything else. In other words, you should make as many bets as possible as long as your bets don’t spill over into your own health and family.
In other words, you must limit your bets to those that don’t affect your health or affect others. By controlling your risks, you can have a more relaxed and positive mindset to embrace new opportunities.
How to place a bet
To place a bet in life is to invest time, money, and reputation in things with a view to obtaining a superlative return.
To give some examples of my own.
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