This applies to any type of 
business under the sun, 
especially to property and 
currency. Staying on the 
side of value, which is
what bookmakers do, 
ensures that in the long 
run you are a winner.

There are several tips 
how to stay on the side 
of value:

1. Doubling your stakes is 
madness. Remember if you 
flip a coin a thousand times 
and it comes up tails, the 
odds are still even money 
that it will come up tails the 
next time you flip it!

Conclusion: Investing lots of good money just to get back what
you are losing plus a little profit, is making the risk is too
high and the return too low. You are not on the side of value.
Keep away from deals like that, but if involved, cut your losses
and stop as soon as you can. It is far better to wait for value
when trying to recoup. 

To keep on buying falling foreign currency in the belief that it
is bound to go up any minute, is a similar kind of example. More
chance to recoup will come, when the sentiment is showing signs
to support the currency you bought. Value will be knocking on
the door.

When it comes to housing, value comes into play again, whether
if you are selling or buying. If selling, value is found in
investing a little to make the house look that much better.
Whatever amount you invest to make the house nicer, it will
return back twice as much, and surely help to sell the property
quicker. Many sellers think that it is silly to make
improvements to a house they no longer want. Yes, but they have
to sell it first. If you are buying, the value is better when
the prices are down rather than up. Not many lose in the long
run on houses bought at sensible prices.

2. When the risk is big and the gain is big, there is no point
in getting involved.

3. When the risk is small and the gain is big, in the long run
you profit. 

4. When there is no risk and the gain is big, beware, unless you
are a burglar.

You would think that all you have to do is to. follow rule 3 to
succeed. Maybe so, but it requires one more thing which is, to
have the rare ability to convince yourself to wait for value.
Very few people have that, hence they lose money.

If you cannot find value by yourself go to experts who can.

I used to know a fellow, who thought himself a dab hand at being
able to always foretell foreign currency exchange trends, but
otherwise, he was quite normal. Last time I heard, he married a
rich old widow just in time to avoid financial problems. I hope
he got value.