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Nassim Nicholas Taleb on Rationality, Risk, and Skin in the Game

EconTalk

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How to Make Money in a Casino

If you play long enough, unless you engage in strategies designed by traders and rediscovered by every single surviving trader, a very similar strategy is to play with the house money. The strategies that followd you gowish a hundred dollars, whatever you ave, and you bet a dollar. If you lose, you bet less than a dollar. And if you make money, you start bedding with he house money. Increase your debt as youre making money, and you reduce your debt as your losing money. That strategy is practically the only one that that s you to gamble or engage in risky strategy of that ruin.

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