While the rest of us are chasing victory, the best in the world know they must avoid losing before they can win. It turns out this is a surprisingly effective strategy.

The greatest aid to judgment is starting from a good position. The company with cash on the balance sheet and low debt has nothing but good options to choose from. When bad times come, and they always do, their options go from good to great. On the other hand, a company with no cash and high debt has nothing but bad options to choose from. Things quickly go from bad to worse. And this example easily extends beyond the boardroom as well.

Each moment puts you in a better or worse position to handle the future. It's that positioning that eventually makes life easier or harder. When our ego takes over and we show someone we're the boss, we make the future harder. When we are passive-aggressive with a colleague at work, our relationship becomes worse. And while these moments don't seem to matter much at the time, they compound into our current posi-tion. And our position determines our future.

We think that if only we get the big things right, everything will magically fall into place. If we choose to marry the right person, it'll all be okay. If we choose the right career, we'll be happy. If we pick the right investment, we'll be rich. This wisdom is, at best, partially true. You can marry the most amazing person in the world, but if you take them for granted, it will end. You can pick the best career, but if you don't work your butt off, you won't get opportunities. You can find the perfect investment, only to look at your savings account and have nothing to invest. Even when we get the big decisions directionally right, we're not guaranteed to get the results we want.

We're naturally wired to organize the world into a hierarchy. We do this to help make sense of the world, maintain our beliefs, and generally feel better. But when someone infringes on our place in the world and our understanding of how it works, we react without thinking. When someone cuts you off on the highway and road rage kicks in, that's your unconscious mind saying, "Who are you to cut me off?" You're reacting to a threat to your inherent sense of hierarchy. On the road we are all equals. We're all supposed to play by the same rules. Cutting someone off violates those rules and implies higher status.

For instance, like all animals, we are naturally prone to defend our territory? We might not be defending a piece of terrain on the African savanna, but territory isn't just physical, it's also psychological. Our identity is part of our territory too. When someone criticizes our work, status, or how we see ourselves, we instinctively shut down or defend ourselves. When someone challenges our beliefs, we stop listening and go on the attack. No thoughts, just pure animal instinct.