T. wrote:
For Mr. J. Davies.
From the dictionary.
GAMBLE:1. place a bet on:stake.
2. risk: hazard, speculate, something of uncertain outcome.
RISK:n, possibility of harm, loss etc: gamble: chance. vt, take a chance on: gamble: hazard.
Those are the exact definitions from a contempary dictionary, I think that more than proves the point that risk and gamble are by definition the SAME.
I am going to be very busy these next few days but I would like to respond to this particular post first. I shall reply to your other posts early next week. In the meantime I would like to set you straight on something you continually misrepresent.
You refer to the word "Risk" if you look back through my posts you will see I have always referred to a "Calculated Risk" you repeatedly fail to represent what I have quoted yet in another post you accuse another poster of misquoting you.
With regard to a Calculated risk and I assume from now on you will refer to what I said as being a calculated risk I would like you to consider the following. I think the following will sit well with most people as regard the definition of a calculated risk.
My definition of a gamble is
"when the outcome is left to pure chance".
Note that all forms of in-house legalised gambling are understandably not left to pure chance. The fact that the house always has the edge to pay their taxes, overheads and to afford themselves a 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. Most intelligent people will try to make sure this risk factor is minimized as close to zero as possible. They will always do their homework first.
Remember that “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. For something like an H/C plate the outcome is not in your hands therefore it is a Gamble.
Someone’s enthusiasm to buy a plate may sometimes lead to impulsive and rash decisions that prove to be a sheer gamble. Never forget the cardinal rule - take calculated risks when the odds are clearly in your favour, but never gamble.
In life you cannot avoid calculated risks but fortunately you have the personal freedom to calculate any and all risk factors.
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!
In making a calculated decision on any risk you should always review all information regarding the risk. You should know how to evaluate that risk and if you can’t do that yourself then you should seek advice elsewhere.
You should also be able to determine the probability of a risk and its potential consequences and how to combine these factors to reach a better understanding of a risks importance. The better you understand a risk the more able you will be to manage it.
If at the end of the day you have calculated that there is more chance of a risk failing and you still proceed with it…then that is a gamble. On the other hand if you have calculated that the risks are minimal then you have achieved what you have set out to do.
If you believe that buying a plate is a calculated risk and it has minimal loss potential then you have made a calculated risk. However there are times when you may perceive that your risk is calculated but others may see it as being miscalculated.
So for me and possibly a lot of other people a calculated risk is not a Gamble, at the end of the day you are leaving very little to chance. This is completely the reverse to what you are saying.
Best wishes
JD