The House Always Wins

Over the long term, the house always wins. In casino, stock trading and life, the odds are always with the house. Gamblers, Day traders and Masō-Shōjos should only play when they have an edge, when the odds are in their favor. And the ony time the odds are truly in their favor is when they act with the house, by being on the same side of the game. (Day Trade Online)

The house always wins. This is based on the law of large numbers, a discovery of swiss mathematician Jacob Bernoulli (1654-1705), who observed long-term predictability in large numbers of random events. Specifically, when a large number of similar people or objects are subjected to events under similar conditions with the same risk, outcomes will approach and tend to cluster around predictable ratios. This is how those swanky Las Vegas casinos got that way. Casino operators control the game and as many variables in the game as they can and continuously look for new ways to increase their advantage. Thus, the house has a better chance of winning over the long term than any individual in the house has. (Clintonomics)

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