The power of placing multiple bets 🎰
If I offered you $15 for winning a coin toss, but you’d have to give me $10 if you lost the coin toss, would you take that bet? Probably not, right? Fair enough, the risk of losing $10 is 50%.
But what if we did the same coin toss 100 times? You would win around 50 times and lose around 50 times.
That means you would win $15 * 50 = $750 and lose $10 * 50 = $500, netting you an almost guaranteed profit of $250. You’d have to be stupid to not take that deal.
A lot of things in life are bets —
Talking to a random person in your class. The “win” situation is that they become your friend, the “lose” situation is… they don’t become your friend. That’s it. If you talk to one person one time, you either win or you lose.
But if you make it a habit to keep introducing yourself to new people, in the long term even if you win 10 out of 100 times, you’ve just made 10 friends and lost nothing. It’s a no-brainer to do it!
You can apply this to talking to girls (or guys), to trying something out of your comfort zone, to buying a new kind of beer at the supermarket — the “loss” situation usually is not as bad as we think, while the “win” situation is tremendously valuable.
The key, however —
…is to not just place a single bet. You need to keep placing bets, so that a certain % of them will win and the remaining will lose. That % as well as the reward will vary depending on the bet.
If you find something with a low “loss”, even a small % of success still makes sense to do a lot. If you find something with a high “loss”, that % needs to be worth it.
The framework is to understand the “loss” and understand the chance of success. You’ll find that most things in our daily life are indeed worth taking a chance on 😊
I highly recommend you click on the video above and watch it! I watched it many years ago, and it changed how I think about many things. It is what inspired the contents of this email as well.
For reading this far. Let me know what are the things in your life you’re hesitating to take a chance on — hit “reply” and land straight into my mailbox!