Right, let’s consider a few other activities that might be or might not be gambling.

 Spread trading (or, in sport, spread betting). I have not had the time to really study this, but it seems as if you bet against or for a certain spread in value. What I have gathered is, that it is something that can run against you very quickly and should therefore only done by people who know what they are doing, in other words, by what I call, a professional. That is not me.

 Shares in its various forms have more or less risk (investing directly in shares is lower risk than playing with futures and options). But even when investing in shares you have to be a professional!

 When I discuss the lessons learnt, you will see how there is a universal principle!

 I think I work in the ultimate gambling game! I make my money as a short term insurance broker (I am good at it and I am proud of it).

 The insurance industry (short term and life) is “ruled” by the actuaries. A bunch of people I respect and admire, not only because they are considered as one the most intelligent groups, but also for what they can do. And they do it very well.

 I am 50 years old, I am male, my education is post graduate and I have a certain income. I have never smoked and am fairly fit. Based on this information an actuary will determine the “odds” when I apply for life cover. Except that he does not call it odds, he calls it a “rate”. If I accept the rate, we have a bet – I bet that I will die sooner than the actuary thinks. In effect we both bet that he will be wrong, because he would like me to live longer than he calculated! (At least I have somebody that I have never met who wishes me a long an prosperous life ;) )

 What an amazing game!

 And that brings me to the answer to the question: “what is gambling?” In effect life is a gamble. To live we have to take risks! If we don’t take risks, we won’t have anything. Every relationship is a risk (gamble). Every time we get into the car we gamble. When we choose a job or change employers or start a business – we take a risk, we gamble, because we can always win or lose!

 Some activities are so part of our lives, and the risk so low, that we don’t even consider the risk any more – but many people have drowned in the bathtub!

 Everything we do and can do, from getting up in the morning to all the opportunities to make money lies in a spectrum from very low risk to very high risk. And we should never avoid the risk just because there is risk! We must manage the risk.

 Tomorrow I will share with you some of the things that I have learnt about risk managing!

 

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