Things about gambling
Via the cap, comes this story of poker playing. If you are playing for money that matters to you, don’t play. There are two factors in gambling and most people forget the most important: does the money matter to you. You cant make the proper mathematical decision because the money matters and you don’t want to lose. So, guys like me will pressure you, you’ll fold, then you’ll go all in with a good hand but mine will be better. Because I’ve figured you out.
If the money matters to you, do not play. Period. If the $2, $20, $200 or $200,000 matters to you, do not play. Period. Even if your money mattering, as the article suggests, only matters on principle.
The next is odds. What are the odds I win vs. odds of pay out? Take a coin flip for instance. You say to me “let’s flip a coin for $1. You win, you get $1. I win, I get $1″. I’m indifferent to this bet. Odds are even money and the $1 doesn’t matter to me. I’d take it because I want people to perceive me as an action guy.
Compared to a coin flip where you’d pay me $0.75 and I’d pay you $1. I probably wouldn’t take this bet unless I wanted the perception as an action guy to manipulate you later, because the money doesn’t matter to me. But my odds of winning are less than my payout.
If you want to pay me $1.25 if I win and I pay you $1 if I lose, I’m all over it. Mathematically, I’m a winner and it’s money I don’t care about.
If you up it to money I care about, I’m not taking any bet. So, you bet me $1M that you can roll a one on six sided die. Odds are in my favor. I’m not taking the bet because $1M matters to me. Even though, mathematically, it’s a solid bet.
It’s also why I play powerball when it gets to eleventy billion dollars. The money doesn’t matter to me.