Bob wrote: "I am not a person who gambles until they run out of money --- although there are many people like that."
Many gamblers are in denial of bankroll management. Even when a gambler has a real edge (not just an imagined edge), they still need to manage their bankroll. There are several systems that are mathematically based. The Kelly system is probably the most famous, as an approximation the idea is to never bet more than your present bankroll times the edge divided by the variance. But many gamblers say that system is too complicated or they don't believe it or it somehow doesn't apply to their particular gamble (as if there are parts of the universe where math doesn't apply). Another approach is to solve for the risk of losing ones bankroll over a given period of play. This second approach is probably the easiest for most gamblers to understand, but it doesn't remove the risk of "gambling until you run out of money". The mathematical solution to that quandary is the Kelly system.
Are there parts of the universe where math doesn't apply?:
http://www.pbs.org/wgbh/nova/physics/great-math-mystery.html http://www.pbs.org/wgbh/nova/physics/great-math-mystery.html
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Posted by: nightoftheiguana2000@yahoo.com
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