How to play the game of life? - risk

Casino Example of handling the risk.

Imagine three guys walk into a casino. Three friends. One tall, one medium one small. They are different in character. The tall guy keeps his hands in his pocket. He takes them out only when he is offered free beer. He doesn't engage in play. He doesn't even change his money for chips. He is just on a sight-seeing tour. We can say because of his preserved mentality he has the lowest risk of the three guys, and lowest chance of getting bankrupt tonight, or any other night. He is a hedger.

Now consider the small guy. He is the opposite of the tall. He has come up with large sum of money, and according to him he wouldn't mind what happens on the table. He would keep on playing until he wins. Actually, for a couple of rounds he will win, Maybe double his money. But winning streak is always ending, always followed by a losing streak. Hence before the night ends and he will end up in empty pockets, hands sweaty, drunken and minus dollars. He is a speculator - or a gambler. Who tries to win by speculating the future.

Arbitrager, speculator and a Hedger

The third guy just walks. Inspect tables and learn the play. He sees how the house always wins by gaining marginal benefits from each play round. After each play round the house will grow positive dollars. And they do by exploiting wrong doings of speculators. Although speculators win short term, their addiction on the game doesn't keep them from enjoying their win. House takes minimal risk. But it is still part of the play. He learns the system, not how to play a game. He opens his phone and buys some stocks of the casino. Why shouldn't he? He thinks the business is booming, and he place a long-term bet on its success over ten years. Not about the profits tonight! He is the Arbitrager.

How to play the game of life?

The casino example although show three different identities, when it comes to game of life, these are not separate. They can be present in same individuals, in different aspects of play. One day we might play the speculator, another day a hedger, when we feel insecure. Only if we are aware of what we are doing and why we can take the role of an arbitrager. I am not saying speculation and taking a bet is a bad thing. If you are 100% sure of a win, why not take a chance. This only applies to situation, when you have a choice, and when the data is not very clear on what will happen in the future.

Now imagine starting any new long term or short-term project. Without being a hedger and avoiding anything threatens your tactics, or without being a speculator and blindly be positive on everything, we can play the role of an arbitrager. By analyzing the situation, considering both positives and negatives. Choosing a career, choosing a partner, taking a course. It is not about what you do once you have made the choice. But spending enough time on the choice while still you have time to decide otherwise.

In other words, we can play the game of life safe, if we choose to do what is important and not urgent, and by prioritizing this over hedonistic pleasure, or greedy hedging. Of course, the improvement will be slow at first, until it breaks the ceiling with massive growth. (See, I am just speculating :) ->LOL)