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Monday, December 06, 2004
Critical Difference Between a Gamble and a Calculated Risk!
by Charles Goodwin
Life so often appears a paradox at every level. The universe is both chaotic and yet "ordered." You have your own "predetermined" destiny, yet you also have free will. If truth and love is total where lies untruth and hate? If God is all encompassing, where lies the proverbial devil?
A paradox indeed! Life may well even appear a gamble, yet gambling will lead you to failure.
From the outset, let us define a gamble: A gamble is when the outcome is left to pure chance.
Note that all forms of legalized gambling are understandably not left to pure chance. The fact that the house always has the edge to pay their taxes and overheads and to afford themselves a more than healthy profit, creates the situation where they are not gambling but taking a calculated risk. When you use their services, you are *not* gambling but paying dearly for the privilege of being a recipient of their calculated risk.
A calculated risk is exactly what the words state. The risks associated with the contemplated action have been calculated. For example, when you drive your car to work or fly in a commercial airliner, you are taking a calculated risk. You are not gambling. You have accurately calculated that the risks are negligible. Going to a casino to win money rather than to be entertained is also a calculated risk. However the risks are substantial. The odds are intentionally stacked against you mathematically.
When you make a purchasing decision in your wealth creation program there will always be a calculated risk. Make sure that this risk factor is minimized as close to zero as possible. Always do your homework first. Remember: Fools rush in where angels fear to tread.
Never, ever gamble on the outcome. If you leave the outcome to pure chance you are by default accepting the victim role in life.
Enthusiasm may lead to impulsive and rash decisions that prove to be a sheer gamble. Ego can also get in the way of your better judgment, especially when success follows success follows success. After a while it seems you can do no wrong and then all of a sudden, bang! You are bought down to earth with a thud. You had forgotten the cardinal rule - take calculated risks when the odds are clearly in your favor, but never gamble.
There is an old Indian saying that translates: After success (or victory), your turban becomes tight and restricts the blood flow to your brain.
Your ego insists on being right. It hates to be wrong. Even when all the logical evidence says "NO," your ego will say "YES, by all means go for it."
Beware when your hat begins to feel tight!
You cannot avoid calculated risks - but fortunately you have the freedom to calculate the risk factor.
So, the main difference between a gamble and a calculated risk is the element of freedom to make a decision. In a gamble you are allowing yourself to be the victim. In a calculated risk, you remain the master of your own destiny!
Charles Goodwin is the author of the highly rated book "The Secrets Of Wealth Creation Revealed" ISBN 0-646-41009-1 (available both as an E-book and paperback). He also co-hosts the WealthCreatorsClub.com Forum.
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