I think you have a good point of view about the calculations on what can afford to risk is crucial for any venture, essentially in high risk activities like gambling or business investment. And also understanding this part is also needed making informed decisions based on your financial situation risk tolerance, and goals. By mindful of this factors individuals can make more informed decisions and avoid financial difficulties.
Understanding of risk management is now crucial because without having a better understanding of this, no one can take good results always keep your eyes on your available sources and then go ahead with these otherwise things can go out of the way which never ends in good.
Take your decisions without the involvement of emotions and always have a review of your situation because if it's not working surely troubling times are ahead of you and things are never going to be favorable gambling for fun is always ok but jumping for big profits and dreaming about being rich is more risky because here it never works as we want.
Even though most are feeling trading and gambling are the same level of work, it never works without having an understanding of risk management.
Well to me I have come with the concept that say By prioritizing risk management, individuals can make more informed decisions and avoid unnecessary pitfalls. Whether in trading, investing, or other high-risk activities, a solid understanding of risk management is essential for achieving long-term success.