Quote from: alegotardo on Today at 02:35:05 AM

Quote from: Queentoshi on February 07, 2024, 07:35:11 AM

Gambling an activity for fun also has the chance to turn someone's fortune. Calculated risk when taken in gambling can be the way to big wins from gambling. Who do you think should take more risk in gambling? The rich gambler or the gambler who is not yet rich. If a rich gambler takes risks in gambling, they are risking losing money and becoming poor from gambling, or getting richer, when a gambler who is not yet rich gambles, they can also get poorer or richer, so the gambler who should take the risk should be the gambler who can handle the dangers of the risk like losing too. When a rich gambler loses from taking a risk, there is a better chance of them being in a position to manage with the losses, than someone struggling financially who a big loss will really affect. So, I am confused after asking myself this question and answering it, does this mean a poor gambler should continue to play it safe in gambling? With no risk, how can a poor gambler change their fortune in gambling?

We must always keep in mind that the definition of "a lot and little money" are quite different between rich and poor.
So, I prefer to use the amount referring to 1 monthly salary rather than a fixed amount in dollars.

I believe that the poor player should always risk less, because if he loses 1 month of salary he will most likely not have a financial reserve to compensate for this loss and consequently he will have to ask for a loan or stop paying a bill to continue "living" in the next month.

However, for the rich player, he could certainly lose up to 3 months of his salary on gambling and would still be comfortable with an emergency fund or giving up some "unnecessary luxuries" for the next few months.

In other words, the problem is not how much they can risk earning due to their income, but rather what they will give up if they lose these amounts.

you are right!
those who study risk management will start to think about these values in percentage terms instead of absolutes
as we said, 1 million of dollars is a lot for a lot of people but will not impact someone like Elon Musk or Bill Gates so much.
it's all relative.