Circle of competence is focusing on the areas you know and knowing the areas you don’t know.
Shan Parrish says it best…
Areas not inside that circle are problematic because not only are we ignorant about them, but we may also be ignorant of our own ignorance. Shane Parrish
Circle of competence helps me stay in the areas that I understand and understand the areas that I don’t know anything about. When something is outside my circle of competence, I avoid it or prioritize understanding it.