Dynasty Mind: Embracing Risk

The Dynasty Mind Series returns in 2024, with six brand new thought-provoking articles, designed to give you a new perspective and get you thinking differently about how to approach your dynasty leagues. The series will aid you with understanding the optimal philosophy, process and game theory to help you implement an effective dynasty plan.

In the second article of the series, I outlined the concept of leverage and how you can apply it to various aspects of dynasty: rookie leverage, trade leverage and portfolio leverage.

In this article I will be focusing on the concept of embracing risk in dynasty: why you should embrace risk, how to identify/implement this concept and how you can embrace risk in the most optimal way.

Why Embrace Risk?

The three types of risk tolerance (the amount of risk you are willing to take on) are risk-averse, risk-neutral and risk-seeker. The concept of a dynasty manager being risk-averse is the tendency to avoid risk, focusing on certainty and small margins of profit/gain in value. The concept of a dynasty manager being risk-neutral is the idea of a balanced approach to assets, with an element of high-risk assets combined with low-risk assets. I want to focus on the risk-seeker concept and why this is the recommended way to play dynasty, by embracing risk.