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
Because you don’t have infinite money. You can’t play the double bet game forever. Eventually you’ll have to stop. The risks get bigger and bigger, but the potential gain remains the same.
Watch: I have £10.
And I can make bets to get double or nothing.
So, bet 1 (betting £1) will result in me having £11 or £9.
If I lose then I go to bet 2 (betting £2), which will result in having £11 or £7.
If I lose, no worries. I try for bet 3 (betting £4), which will give me £11 or £3
If I lose again, whoops, my money is gone. Now let’s say I’m feeling great about bet 4, so I take out a loan. (Betting £8), now the potential outcomes are £11 or – £5.
Now, look at this I am plunging myself into debt. I’ve spent all my money, but I’m not fighting for a better outcome, I’m still just trying to get that single £1 coin.
Eventually, I lose enough times that I have to stop, which will be fewer attempts than you might have imagined.
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