The term ‘risk management’ is one you’re likely to hear often if you’re an entrepreneur, investor or business professional. In fact, the term is now so far reaching that it’s not uncommon to hear it repeated in occupational training seminars and investment meetings alike. Of course, being seen to be clued up – and indeed, adept – in the finer arts of risk assessment is undoubtedly an asset, but how can you hone the skills needed to dazzle colleagues and clients? Well, you may be surprised to discover that, if you’re a bit of a slots fiend, you may already be doing it already…
Here are a few integral things playing slots can teach you about risk management:
Budgeting and being sensible with your own (or someone else’s) cash is a fundamental part of successful risk management. Rushing into any endeavour, be it professional, commercial or personal, with a big wedge of cash and a risk-it-all mentality isn’t a smart move in anyone’s book.
Every profiteering slot player and savvy investor knows that matching stakes to their own bankroll and budget – i.e. not playing high-roller games with a low-roller’s budget – is key. So, the first rule of good risk management is also the first rule of smart slot play: work out a strict, sensible budget and stick to it. Nail this and you’re on your way.
Once you’ve got the art of not haemorrhaging money in the bag, you next need to become a dab hand at making more of it. While there are many ways to do this, both with gambling and in life in general, the key to making money on a consistent basis is to grow it strategically. This essentially means adopting an outlook diametrically opposed to the dreamy boom-and-bust approach of people who look to achieve success with that one big win.
To do this, you simply need to find a market (or indeed, a slot) that you’re good at playing and play it, sans ego, to channel the power of compound interest, e.g. make a very modest profit of 1% each day. If you do this, rather than go through the cycle of win-lose-win-lose then you’ll make a small daily increment that, over time, will amass into a far more considerable amount. Slow and steady wins the race.
Ask any clued-up investor what the golden rule of their industry is and they will no doubt reply: “protect capital”. While it goes without saying you should only ever be risking money you can afford to lose, a true master of investment/slot play will do everything in their power to stop it from happening at all.
The best way to achieve this is to restrict yourself to picking fights you’re confident of winning. This means taking on only those opportunities (or games) that you feel truly comfortable with. Of course, nobody wins all the time but if you can manage to keep your losses down to 10-20% of your bankroll (max) then it will improve your chances of being a long-term winner no end.
Whether its personal finance, client holdings or a departmental budget, speculating with money can be stressful. Very stressful. If you can channel the visceral thrill that comes with it and use it to spur you on then you’ll probably be in a good place. If, however, you find yourself feeling more anxious than excited, then chances are you need to have a serious re-think. Because, if there’s one thing every single successful slot player in the world acknowledges, it is this: if it’s no longer fun then it’s time to stop.