Alec and Martin explore why people fixate on downside risk instead of potential reward. Using poker's expected value concept, they introduce the idea of becoming a "risk trader" who consciously exchanges risk for reward by changing how you think about it.
when you say risk, I'm taking a risk, you're, and this is the thing I put out on Instagram, it's like you are looking at the downside of what could go wrong. So you're taking something in that you don't want. Nobody wants risk. If I could be sure I was gonna, you know, make $100 million with zero risk, that would be the best. But you're, there's always a risk. So like when you say I'm taking a risk, what is your mind doing? Your subconscious mind is focusing on the risk that you're taking. It's not focusing on the reward that you're getting. So that's why in poker we have, you know, EV, which is expected value because there is risk, but there is reward. So you think of things in terms of what is the expectation of the decision I'm making. So the reason I coined this phrase risk trader is because I'm taking risk in exchange for rewards. So when I, when I change the linguistics and I change my programming about my relationship with risk and I say I'm a trading risk, I start to see risk in a different way. And when you see risk in a different way, uh, you approach it differently.
Product and User Experience, how to make a cure and not a vitamin with Greg Raiz
