So I don’t gamble, and don’t ever indend to make it a habit.
But a friend told me to play roulette, and I would have a ~47% chance of doubling my money and , as long as I had enough money to keep doubling my stake, would have a ~95% break even if I kept going until I won and never played again.
So say I had $200k in the bank and always put my money on red
Spin 1 : $5K
Spin 2: $10K
Spin 3: $20K
Spin 4: $40k
Spin 5: $80K
Spin 6: $160k
In this scenario, I’d have a ~47% chance of winning $5k, and just a 2% chance of losing $160k?
EDIT: Although just working this out, I think I would probably put the 160k into a 4% savings account if I had it, or start off way smaller amounts e.g. $500 to reduce my chane of losing money significantly lol.
In: 8
Take an example. You’ve got $200k
Spin 1, you put $5k in with a 52.7% chance to lose. You lose. You now have $195k
Spin 2, you put $10k in with a 52.7% chance to lose. You lose. You now have $185k
Spin 3, you put $20k in with a 52.7% chance to lose. You lose. You now have $165k
Spin 4, you put $40k in with a 52.7% chance to lose. You lose. You now have $125k
Spin 5, you put $80k in with a 52.7% chance to lose. You lose. You now have $45k
What now? You’ve not got enough left to double your last bet and cover your loss. So you put the remaining $45k in with a 52.7% chance to lose. You lose. You have no money.
At each spin, you’re doubling the amount you’re risking on the same odds that are still against you. It’s just digging the same hole, but faster.
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