The Rational Man’s Guide to Taking Smart Risks

risk


As I mentioned in how to act with uncertainty, every action comes with some amount of risk because we never know for sure how the future is going to work out.

In general, the more information you have, the smaller the risk you’re taking. But the less information you have, the bigger the risk you’re taking.

And the bigger the risk you want to take, the more information and advice you should try to gather before reaching a final decision.

Therefore, when we have a lot of doubt about a decision, that can often be a sign that we need to step back and evaluate the situation more before moving forward.

This article is going to cover the main things to consider when trying to evaluate a “smart risk” vs. a “dumb risk.” Use these guidelines to evaluate the risks you take in your own life.