How to Reduce Risk in Your Portfolio

When the stakes are high, most people want to make risk of us choices. But if instead they can spread the risk among a lot of people, that might really help. If the stakes are small, you don't tend to feel as risk of us. The second way we can reduce risk is through combining many smaller risks, which aren't very closely related. So when you break up big risks into small risks, you can take a lot of little gambols and make yourself better off without risking a huge loss that leaves you destitute.