Take precautions when taking risks.
Overcome your fear of taking risks. Most people are terrified of losing, so they don’t take any risks at all. However, this significantly limits your success because if you don't take risks, you don't give yourself the chance to win big. Keep in mind that you will sometimes lose some gambles—but this should not hold you back from trying again.
Ensure that all the gambles and risks you take are independent of each other. For example, do not make multiple investments in the same industry because if one goes bad, they all go bad. Instead, spread your investments out over multiple companies.
Ensure that the greatest possible loss does not deplete your total wealth to the point where recovery is impossible. Before taking a risk, always evaluate all the pros and cons first.
Steer away from long shots as much as possible.
The probability of winning is very small in these cases.