Welcome to Money for the Rest of Us.

This is a personal finance show on Money.

How it works, how to invest it, and how to live without worrying about it.

I'm your host, David Stein, today's episode 394.

It's titled How to Get Better at Risk Taking.

I recently received an email from a listener, She writes,

I appreciate your knowledge in sharing what you know.

I'm a plus member, and I'm hoping you can ease some of my concerns.

I've been getting a ton of the market is going to crash emails.

Several mentioning China taking over Taiwan,

market drop predictions of 80%.

I know you can't read the future,

but I'm wondering if there is anything you can tell me

that might help calm my panic.

In today's episode, we're going to take a look at risk taking,

risk aversion, loss aversion, and how to better manage risk

and be willing to take risk.

We'll look at some of her specific concerns with China

and 80% drops, but also step back a little bit

and look at some principles for how we can be better

at managing risk and taking risk.

First, no one knows whether the stock market will fall 80% or not

...