Thursday, August 21, 2014

To become rich, never ever buy lucky draws like TOTO, 4D etc!

This time, I am trying to bring the idea across that to become rich, never ever buy lucky draws like TOTO, 4D etc!
If you are not rich and the more you gamble or buy lucky draw, the poorer you will be!
Many people just don't understand why!

Ok, somebody will surely ask me (just like my friends), isn't your trading of futures a form of "gambling"?
Isn't your so-called investment in stocks etc also a form of "gambling"?
Oh well, this is a difficult question to answer unless you know the difference!

Let me try to explain in layman terms:

1) When you trade futures - What is your chance of winning?
Here, to certain extend, you can control the chance of the winning outcome, at least after you learnt some skills and knowledge they will help you to increase your chance of winning.
You can increase your probability of winning, so to speak.
Good traders can achieve 7-8 profitable traders out of 10, which is a winning rate of 70-80%.

2) When you gamble and buy luck draws like TOTOs, 4D - What is your chance of winning?
When you buy 4D, your chance of winning is 1 / 10,000 = 0.01%
When you buy TOTO, your chance of winning is 1 / (42 x 41 x 40 x 39 x 38 x 37 ) = 0.00000002648% !!!!!! (which is why TOTO can afford to pay you so much much more when you win than 4D and still rack in BIG PROFITS!!)
And the "best" (to Singapore Pool obviously) part of all is that: You could not have any influence in the outcome to be in your favour!!!!

To me, anything is "gambling" as long as you could not have any influence in the outcome to be in your favour and you are unable to increase the chance / probability of winning!

What do you think?
What is your definition of "gambling"?

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