On Chance: Gamblers II

"Pure mathematics is the world's best game. It is more absorbing than chess, more of a gamble than poker, and lasts longer than Monopoly. It's free. It can be played anywhere - Archimedes did it in a bathtub." (Richard J Trudeau, "Dots and Lines", 1976)

"Probability does pervade the universe, and in this sense, the old chestnut about baseball imitating life really has validity. The statistics of streaks and slumps, properly understood, do teach an important lesson about epistemology, and life in general. The history of a species, or any natural phenomenon, that requires unbroken continuity in a world of trouble, works like a batting streak. All are games of a gambler playing with a limited stake against a house with infinite resources. The gambler must eventually go bust. His aim can only be to stick around as long as possible, to have some fun while he's at it, and, if he happens to be a moral agent as well, to worry about staying the course with honor!" (Stephen J Gould, 1991)

"Gambling was the place where statistics and profound human consequences met most nakedly, after all, and cards, even more than dice or the numbers on a roulette wheel, seemed able to define and perhaps even dictate a player's... luck." (Tim Powers, "Last Call", 1992)

"Probability theory has a right and a left hand. On the right is the rigorous foundational work using the tools of measure theory. The left hand 'thinks probabilistically', reduces problems to gambling situations, coin-tossing, motions of a physical particle." (Leo Breiman, "Probability", 1992)

"Losing streaks and winning streaks occur frequently in games of chance, as they do in real life. Gamblers respond to these events in asymmetric fashion: they appeal to the law of averages to bring losing streaks to a speedy end. And they appeal to that same law of averages to suspend itself so that winning streaks will go on and on. The law of averages hears neither appeal. The last sequence of throws of the dice conveys absolutely no information about what the next throw will bring. Cards, coins, dice, and roulette wheels have no memory." (Peter L Bernstein, "Against the Gods: The Remarkable Story of Risk", 1996)

"Time is the dominant factor in gambling. Risk and time are opposite sides of the same coin, for if there were no tomorrow there would be no risk. Time transforms risk, and the nature of risk is shaped by the time horizon: the future is the playing field." (Peter L Bernstein, "Against the Gods: The Remarkable Story of Risk", 1996)

"A random walk is one in which future steps or directions cannot be predicted on the basis of past history. When the term is applied to the stock market, it means that short-run changes in stock prices are unpredictable. Investment advisory services, earnings forecasts, and chart patterns are useless. [...] What are often called 'persistent patterns' in the stock market occur no more frequently than the runs of luck in the fortunes of any gambler playing a game of chance. This is what economists mean when they say that stock prices behave very much like a random walk." (Burton G Malkiel, "A Random Walk Down Wall Street", 1999)

"All this, though, is to miss the point of gambling, which is to accept the imbalance of chance in general yet deny it for the here and now. Individually we know, with absolute certainty, that 'the way things hap pen' and what actually happens to us are as different as sociology and poetry." (John Haigh," Taking Chances: Winning With Probability", 1999)

"The psychology of gambling includes both a conviction that the unusual must happen and a refusal to believe in it when it does. We are caught by the confusing nature of the long run; just as the imperturbable ocean seen from space will actually combine hurricanes and dead calms, so the same action, repeated over time, can show wide deviations from its normal expected results - deviations that do not themselves break the laws of probability. In fact, they have probabilities of their own." (John Haigh," Taking Chances: Winning With Probability", 1999)

"This notion of 'being due' - what is sometimes called the gambler’s fallacy - is a mistake we make because we cannot help it. The problem with life is that we have to live it from the beginning, but it makes sense only when seen from the end. As a result, our whole experience is one of coming to provisional conclusions based on insufficient evidence: read ing the signs, gauging the odds." (John Haigh," Taking Chances: Winning With Probability", 1999)