1. Traders, gamblers, and casinos deal with known and unknown variables that can affect the outcome of every trade or bet. Known variables in gambling are the rules, while in trading, they are the results obtained from market analysis. Traders use known variables as their analysis tools to have an advantage in any trade, similar to how casinos have the advantage with their rules.
2. Unknown variables in gambling and trading can impact the results of each bet or trade. In blackjack, the unknown variables are the shuffling of the cards and the player's decisions on how to play their hand. In roulette, the unknown variable is the force used to spin the wheel. In trading, the unknown variable is the presence of other traders, which makes the outcome of every trade uncertain.
3. Casino owners do not attempt to predict the outcome of each individual event. Predicting outcomes is extremely difficult due to the numerous unknown variables in each gambling game, and even if they could predict, consistent results may not be guaranteed. Casino owners know that as long as they have an advantage in their favor and have a large enough sample size of events, their advantage will have numerous opportunities to play out.