Basically, when you throw the pitch, there's a "strike zone" in front of the batter where any pitch that isn't hit counts as a strike, but where the batter is most able to hit the ball. If you throw the ball outside the strike zone, it's harder to hit, but if the batter doesn't swing, it doesn't count as a strike - it's a "ball". Four balls means the batter goes to first base.

Thus, if you don't want to risk a home run, just throw the ball where it can't possibly be hit a few times, and give up one base instead of several points.

It's sorta about knowing when to lose, but it's more like the old Sun Tzu chestnut: "In war, the way is to avoid what is strong and to strike at what is weak."