Putting It All On Red

Picture this: a small silver ball weighing 5 grams is dropped from a height of 6 inches onto a double-zero roulette wheel spinning at 2.2 seconds per revolution and bounces on an angle of 36.5 degrees off the canoe between numbers 21 and 22.

So can you tell me which number it will land on? Or even which colour?

Yeah, I’ve got no idea either!!

But, someone much smarter than I am might be able to work this one out with some degree of accuracy.

The problem, of course, is that this information is not readily at hand in the short time in which a player can make a bet, let alone the tools to calculate the answer. This is why in the eyes of most intelligent people, playing roulette is simply a gamble.

Put simply, you don’t know what will happen to your money because you don’t know enough about the factors that are going to influence it. The best you can do is cross your fingers and pray that you get lucky.

This really is the difference between investing and gambling. Investing revolves around using quality information to determine a likely outcome, which is going to result in more chips in your stash. Gambling revolves around taking a guess and hoping for the best.

In the share market, an investor might study the charts and/or fundamentals of a particular company, comparing it to similar others, considering the state of the market, and then making an educated decision based on that information. It is easy to gamble in the share market, too – just pick shares in the same way that you might pick a number on the roulette table, and hope for the best.

And, a similar theory would apply to real estate investments, too. The more research that you do, and thus the more quality information that you become aware of, the better your decisions can and will be.

So, how are you playing your financial tables at the moment – are you putting it all on red, or, are you watching the ball and calculating what will most likely happen next before placing your bet…?