3 examples of edges.
The first one is obviously the market maker who earns a spread. Now why is that market makers don't blow up and go broke but traders do?
Next one, casinos. Casinos have an edge with every game. The edge varies from game to game but they earn their edge too. Now why is that casinos never go broke and blow up but gamblers do?
Third one, the sports bookie. He has an edge. He collects 5% from the winner right. So why is it that bookies never go broke and blow out but sports bettors do.
See in each of these categories, the people who have the edge end up sooner or later taking the money from the people who don't have an edge. These edges are real and they last that’s why market makers, bookies and casino operators have been around since the beginning of time. That is why these groups of people have amassed huge fortunes. Argue all you want but you’re not getting their money. They are getting yours. The key for them is to keep finding new suckers. Why? Because if you stop betting with the bookie, trading with the market maker or gambling at the casino, they lose. Why do you think all three of these groups find clever new ways to get you to play? They try to make it as easy as possible for you and in some cases, even convince you that it’s really you that has the edge not them. This is a sucker’s ploy. Why do you think casinos have bookshops in their lobby teaching you how to count cards? Why do you think they will let you carry the book with you to the blackjack table? Why do the CBOE and Merc give free seminars on trading their new products? Why does the bookie let you have free bets? It's to get your money. As Bobby Deniro says in the movie "Casino", guys come in here with every system, every strategy in the world. They come in here to try to take our money but sooner or later we get it all.
The first one is obviously the market maker who earns a spread. Now why is that market makers don't blow up and go broke but traders do?
Next one, casinos. Casinos have an edge with every game. The edge varies from game to game but they earn their edge too. Now why is that casinos never go broke and blow up but gamblers do?
Third one, the sports bookie. He has an edge. He collects 5% from the winner right. So why is it that bookies never go broke and blow out but sports bettors do.
See in each of these categories, the people who have the edge end up sooner or later taking the money from the people who don't have an edge. These edges are real and they last that’s why market makers, bookies and casino operators have been around since the beginning of time. That is why these groups of people have amassed huge fortunes. Argue all you want but you’re not getting their money. They are getting yours. The key for them is to keep finding new suckers. Why? Because if you stop betting with the bookie, trading with the market maker or gambling at the casino, they lose. Why do you think all three of these groups find clever new ways to get you to play? They try to make it as easy as possible for you and in some cases, even convince you that it’s really you that has the edge not them. This is a sucker’s ploy. Why do you think casinos have bookshops in their lobby teaching you how to count cards? Why do you think they will let you carry the book with you to the blackjack table? Why do the CBOE and Merc give free seminars on trading their new products? Why does the bookie let you have free bets? It's to get your money. As Bobby Deniro says in the movie "Casino", guys come in here with every system, every strategy in the world. They come in here to try to take our money but sooner or later we get it all.