How to Lose the Right Way

There is a great beauty in being creative within the constraints of circumstances.

It would be fair to say that losing can be fairly subjective but let’s look at a few guidelines for what is and what isn’t an acceptable loss.

Don’t start with a Hail Mary Pass

Unless you’ve exhausted all the options that present lower risk, there is no reason to skip ahead to the highest risk play with the lowest probability of success. While a Hail Mary could have a very high payout and for some personality types “just feels right”, there are strategies available that would have been simpler to plan, cheaper to execute and have a higher probability of success.

Always know what you can lose

Knowing what you can lose trumps knowing what you can gain. Having a clear picture of what you stand to lose, not only in money but time, effort, customers, traction and everything else, takes a serious risk analysis. To undertake the risk analysis you must know your relevant batting average and minimum risk-reward ratios.

When losses are managed well, the lessons they teach often justify the costs incurred.