I’m trying to think of real life situations where this is useful, but I don’t think I am doing too good a job.
For people who are trying to use their bankroll to make money:
People who are in charge of spending money in a business. When there is money available for a business, you want to invest it to grow it, but you don’t want to risk too much and go bankrupt.
People who play the stock market for profit. (Although from what I understand, the stock market is so competitive that trying to outperform is almost always a bad idea.)
People who gamble for a living. Poker is the big example I can think of where this can make sense. With most other forms of gambling, like blackjack, the odds are against you. And with things like sports betting where you could get an edge if you’re smart enough, my understanding is that the house takes a big enough cut such that it’s really, really hard to get an edge.
For people who are looking to gamble for the sake of intellectual growth, like OP says, tiny quantities should work. And even if you need to bet in larger quantities so that you “feel the pain”, 1) these quantities are still probably going to be a small fraction of your overall bankroll, and 2) if you are gambling for the sake of intellectual growth, you are probably smart enough to get a job that pays a lot of money, and can thus replenish your bankroll easily.
I’m trying to think of real life situations where this is useful, but I don’t think I am doing too good a job.
For people who are trying to use their bankroll to make money:
People who are in charge of spending money in a business. When there is money available for a business, you want to invest it to grow it, but you don’t want to risk too much and go bankrupt.
People who play the stock market for profit. (Although from what I understand, the stock market is so competitive that trying to outperform is almost always a bad idea.)
People who gamble for a living. Poker is the big example I can think of where this can make sense. With most other forms of gambling, like blackjack, the odds are against you. And with things like sports betting where you could get an edge if you’re smart enough, my understanding is that the house takes a big enough cut such that it’s really, really hard to get an edge.
For people who are looking to gamble for the sake of intellectual growth, like OP says, tiny quantities should work. And even if you need to bet in larger quantities so that you “feel the pain”, 1) these quantities are still probably going to be a small fraction of your overall bankroll, and 2) if you are gambling for the sake of intellectual growth, you are probably smart enough to get a job that pays a lot of money, and can thus replenish your bankroll easily.