Here’s why you always lose money at a casino

🍀 Here’s why you always lose money at a casino

Hey there, it's Manav! Welcome to my newsletter.

✨ Every Monday, I'll be sharing my thoughts on productivity, life lessons, and helpful tips, all based on what I've learned throughout the week.

This weekly newsletter is my way of reflecting on life and keeping track of the fascinating things I discover or come to understand. It's also a promise to myself and all of you to stay mindful and curious and engaged with life's many lessons.

Each issue will dive into specific topics, and I'll be sure to add my own spin to them. So, grab a cup of joe and get ready for some weekly wisdom!

Dunning Kruger Effect

In 1975, Kodak failed to acknowledge the shift to digital photography,

despite having one of their engineer Steven Sasson invent the first digital camera.

Kodak’s executives failed to acknowledge that their traditional film business will get disrupted.

While ignoring the rise of digital photography

By the time Kodak realized its mistake and tried to transition it was too late.

They filed for bankruptcy in 2012, marking the end of an era for a company that once held a dominant position in its industry.

This is an example of The Dunning-Kruger effect.

It’s when people mistakenly believe they are more competent or skilled at something than they actually are.

On the other hand, those who possess more knowledge or expertise tend to underestimate their abilities because they have a greater understanding of the complexity and nuances involved.

This is why you need to be open to criticism and self-reflection and seek feedback from other people.

Gambler’s Fallacy Explained

Here’s why you always lose money at the casino.

It’s because of a cognitive bias called gambler's fallacy which means that people usually believe that past events can influence future outcomes.

You probably didn’t understand. Did you?

Let me explain.

Let’s say you go to Vegas to gamble.

You decide to play roulette.

You’re betting on black or red.

After seeing a series of reds, you’d be likely to bet on black, falsely assuming that the wheel will turn up a black to even out the score.

But that doesn’t happen you end up losing all your money on red.

This is because.

In reality, each spin of the wheel is an independent event with the same set probabilities, unaffected by previous results.

This happens because of our intuitive misunderstanding of randomness and probability.

It’s not always our fault we humans are always looking for patterns in the real world, justifying every decision with some dumb logic.

A roulette wheel, for instance, does not have a memory; each spin is independent and holds a 48.65% chance of landing on red or black.

This also happens in other areas of our life.

For instance, an investor may sell off a nice compounding stock believing that its "luck" will soon run out {Happened to me before}.

As you can imagine this kind of decision-making can have some serious financial implications.

Well, next time you go to a casino:

Develop a clear strategy before entering the casino, such as setting a budget, determining your betting limits, and knowing when to stop.

And lastly, Avoid chasing losses: Don’t fall into the trap of trying to recoup losses by increasing your bets.

My Million Dollar Morning Routine ☀️:☀️:

Everyone keeps asking me about my morning routine, I finally decided to share it:

The first thing I do every morning is drink a gallon of celery juice.

Then I stare into the sun until my eyes bleed out.

Then I hit the infrared sauna as I like my body toasted first thing in the morning.

After I’m completely detoxified, I’ll do a cold plunge.

This will boost my blood circulation, reduce muscle inflammation, and finally wake me up.

Plus This helps me save money on my coffee.

Next, I will lie in the oxygen chamber and do some work.

As I leave the oxygen chamber I feel a little lightheaded, So I take an IV to feel energized again.

Lastly, I’m gonna do some red light therapy to make my face feel like I’m 18 again.

And that’s my morning routine guys.

Try at your own risk 😂😂

{This is a joke if you think I’m being serious}