People often wonder if the theory about educated gambling is really true. We will answer all your questions and doubts in this article, as well as give you several examples, so let us begin with that first.
Yes, there is such a thing as an educated gamble – but it has nothing to do with being smarter than everyone else. It has everything to do with understanding probabilities and statistics. The term “educated gambler” was first used during the early 20th century by people who were trying to convince legislatures not to outlaw casino games or betting on horse races.
In those days, legislators tended to be very conservative men from rural areas where the casino games were usually located, and they didn’t understand much about odds other than that they always favored the house.
The “educated gambler” is a reference to someone who understands odds and probabilities, and it implies that they don’t lose their money very often because they play within their limits and bet with what’s left over after they pay their bills and buy food and clothes for themselves and their family. Anybody can be an educated gambler if they understand how the “betting” – sometimes called investing – works.
Here are some examples of what we mean:
The Stock Market
The stock market is one of the best examples of educated gambling. If you’re successful, you can make a lot of money over time by buying and selling stocks that have good earnings potential or are undervalued for some other reason – whether it’s because they’ve been neglected by investors generally, because the company pays out low dividends, or any number of other reasons.
The key to success in this kind of gamble is doing your homework before you invest so that you understand what kinds of returns are possible for companies in general or for specific companies so that when somebody tells you “XYZ Corporation has really taken off since last year,” you’ll know what that means.
Online casinos are different from brick and mortar ones because you don’t get to see the cards or dice that the other players are using. However, if you learn how to bet by using math and probability – rather than just “feeling” like a winner when you win and losing whenever you lose – then you’ll be an educated gambler in this context as well.
Depending on the game you are playing, there are different ways to be knowledgeable or “educated” and have the odds more in your favour. A good example of this is playing Texas Hold’em Poker or Blackjack. If you know the statistic off-by-heart and can play accordingly, you have an advantage over other players who play more emotionally or are just hoping to be lucky.
If you’re planning on trying your luck with online gambling be sure to check out some online guides first, to ensure you know what you’re getting yourself into before you “invest”.
Sports betting is another example of gambling where understanding the probabilities involved will make it easier for you to identify opportunities where you can make money over time based on small advantages that add up over dozens, hundreds, or even thousands of bets.
Depending on which sport you are betting on and your knowledge of the teams and players (or animals and riders for horse racing) your likelihood of winning changes. If your knowledge of the sport is extensive and your study includes stats that aren’t commonly known or understood by most people then you might find yourself in a position where you can consistently “beat the bookies” – another term for sports betting establishments.
The cryptocurrency market is one of the most volatile ones that exist today, where the winners and losers are decided in a matter of hours or less. With Bitcoin’s value skyrocketing recently, it’s easy to understand why people who were lucky enough to get on board early were able to make so much money – but understanding how cryptocurrency works (beyond knowing that it does work) will help you analyse these new markets without getting too caught up in emotions like fear of missing out.
Like any other form of gambling, if you study your “investments” before putting any real money into them then the odds will be more in your favour than they would be otherwise. The trick is figuring out what kinds of returns are possible
This is another great example of educated gambling. Basically, if you understand the odds of making your money back on an investment before you invest, then you’ll be able to make better decisions about whether or not to invest.
This might include studying how many other people have invested already and looking at their success rates so that you can decide what kind of risk is involved based on both how likely it is that the project will come through as promised and also deliver the returns they advertised.
If your predictions are accurate enough, this could even mean investing early in a company or product that later becomes wildly successful – because by studying the market for new projects you’re just as likely to find these kinds of opportunities as you are to lose money trying.
So What’s The Point?
The point is pretty simple, it’s that even if you’re not in a position to be investing large sums of money in gambling or investments, there are still ways to improve your odds through understanding probabilities.
You can always do this kind of research on your own time, which doesn’t cost any money beyond the price of whatever educational material you have to buy or study. Of course, once you’ve done the hard work yourself the returns are all yours so good luck!
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