To bring the four types of luck to life, let's look at some hypothetical examples of each:
Type 1: Blind Luck You win the lottery.
Type 2: Luck from Motion You start a new job and start saying yes to every opportunity that comes your way. You're working hard, running around, meeting new people, and connecting with new connections whenever possible. You connect two of the people you met through taking on these opportunities, and they start a business together and make you a small advisor because you connected them. It becomes a big business, and you make $1 million. Your hustle and motion created this "lucky" event.
Type 3: Luck from Awareness You're an entrepreneur and see the impressive pace at which generative AI develops for creating images and art. You had been building around the NFT profile picture craze of 2021/22 and believed that generative AI profile pictures might represent a market with similar potential. You build a generative AI profile picture app and charge people to use it, making millions. Your mind was prepared for the "lucky" opportunity given your experience set.
Type 4: Luck from Uniqueness You've spent years tinkering with generative AI models (way before they were cocktail party fodder). Your unique passion and earned expertise mean that you're often called on by founders and CEOs building at the forefront of AI, and you can earn equity in various interesting projects that will likely return millions. Your unique and quirky hobby attracts luck to you.aragraph
Luck is often associated with chance, and statistical analysis is crucial in determining the likelihood of certain events occurring. In the universe of statistical analysis, the P value is a crucial concept that holds a vital role. The P value is often seen as a measure of statistical significance and interprets data within the confines of a specific statistical model. In essence, the P value is the probability that the observed data, or data more extreme, could occur under the assumption that the null hypothesis is true. The null hypothesis assumes no significant difference between specified populations, and any observed difference is due to sampling or experimental error.
The null hypothesis is the starting point for any experiment or test, serving as the statement that is tested to determine whether it is false. For instance, if you test whether a new type of fertilizer increases the size of your tomatoes, the null hypothesis would be that the new fertilizer does not increase the size of tomatoes. If your test shows that the tomatoes grew bigger with the new fertilizer, you would reject the null hypothesis and conclude that the fertilizer has an effect. In contrast, if the tomatoes did not grow bigger, you would not reject the null hypothesis and conclude that the fertilizer has no effect. This approach helps scientists be cautious and only alter their beliefs when they have sufficient evidence.
When statistical analysts calculate the P value, they determine how likely the data they've gathered would appear if the null hypothesis were correct. For example, a low P value (often below 0.05) can lead to rejecting the null hypothesis. This is because it indicates that the observed data is highly unlikely under the assumption that the null hypothesis is true, and thus, some other explanation may be more appropriate. However, it's essential to note that a P value does not prove that the observed effect is 'real' or that the null hypothesis is false. Instead, it shows that the observed data is unlikely under the null hypothesis.
The human mind shows extraordinary capability at recognizing patterns while at the same time tending to underestimate the natural scope of random processes. Taken together, this easily misleads researchers in judging whether the observed characteristics of their data are significant or just the outcome of random effects. One of the best tools to assess whether observed features fall into the scope of pure randomness is statistical significance testing, which quantifies the probability of falsely rejecting a chosen null hypothesis. The central parameter in this context is the P-value, which can be calculated from the recorded data sets. In the case of P-values smaller than the significance level, the null hypothesis is rejected; otherwise, it is not.
Poker is a game that is often associated with luck. Many people believe that winning at poker is all about getting lucky and being dealt a good hand. However, the truth is far more complicated than that. Poker is a game dominated by skill, strategy, and psychological tactics, where a little bit of luck is merely the cherry on top.
"Poker isn't just a card game; it's a game about people," says Vanessa Selbst, a world champion poker player. "Sure, the cards add an element of chance, but your understanding of people, analytical skills, and ability to react determine the game's outcome." At the heart of this skill-based game lies the concept of bluffing – misleading opponents into thinking that you have a better, or worse, hand than you do. This high-risk, high-reward strategy can turn a mediocre hand into a winning one. Alternatively, a player can underplay a strong hand, luring opponents into betting more. Either way, the key to bluffing is not the cards you're dealt but how convincingly you play them.
One fundamental skill in poker is calculating the odds. Understanding the probabilities of getting certain hands and how they stack up against the potential hands of your opponents allows players to make informed decisions. Poker professionals often dedicate years to studying odds and scenarios to make decisions less about luck and more about calculated risk.
Another vital skill is knowing when to fold. "Folding is an essential part of poker, even if it's one of the least glamorous aspects," explains Selbst. "Knowing when to cut your losses is just as important as knowing when to bet big." A delicate balance between courage and caution can distinguish between going home empty-handed or winning the pot.
The beauty of poker lies in its combination of uncertainty and control. Yes, the cards you're dealt are random, and an element of luck is involved. However, poker is not just about playing your cards; it's about playing your opponents.
Even the most successful poker professionals lose 30-40% of their play sessions. Yet, they remain profitable in the long run because they maximize their wins, minimize their losses, and capitalize on their opponent's mistakes. This aspect underscores the strategic nature of poker and puts to rest the misnomer that it's a game of chance.
How do we use our idea of types of ‘luck’ in poker?
In Texas Hold'em poker, just as in life, both luck and skill contribute to success. The game serves as a living, breathing model of how to apply the four types of luck: Blind Luck, Luck from Motion, Luck from Awareness, and Luck from Uniqueness.
Type 1: Blind Luck
In poker, Blind Luck is the luck of the draw. You're dealt a pair of aces—the strongest pre-flop hand in Texas Hold'em. You didn't do anything to earn this hand; it's pure, random luck. In this situation, bluffing skills or the ability to force others to fold are not needed. Your luck is much like that of a lottery winner; the random draw of cards has put you in a potentially winning position.
Type 2: Luck from Motion
Luck from Motion, on the other hand, is about creating opportunities and acting on them. You're not always going to be dealt a great hand. But, if you play enough hands and are willing to make strategic bets, even with less-than-ideal cards, you increase the chance of catching a lucky break. This is where skill comes in. You bluff, you raise, you call. You force your opponents to fold by playing aggressively, even when your hand isn't perfect. This can be compared to those who relentlessly seek opportunities, create connections, and reap rewards from their efforts. In Texas Hold'em, the player in motion can turn a mediocre hand into a winning one through skill and sheer determination.
Type 3: Luck from Awareness
Luck from Awareness requires a keen understanding of the game's subtleties, akin to the entrepreneur spotting a market trend. A skilled Texas Hold'em player knows their opponents' behaviors, betting patterns, and tells. You see your opponent nervously recheck his cards after the flop, suggesting a weak hand. Recognizing this, you choose to raise and pressure your opponent to fold. This strategic move comes from your keen awareness of the game's dynamic and your opponents, creating a "lucky" situation where you turn the odds in your favor.
Type 4: Luck from Uniqueness
Finally, there is Luck from Uniqueness. In poker, your unique playing style and strategies are your earned expertise that draws opportunities. Your years of experience, understanding of the game, and ability to remain composed under pressure make you a formidable opponent. Your unique strategies may involve occasionally resisting a fold pre-flop, which can keep your opponents guessing and create opportunities for bluffing later in the game. These distinct skills can be compared to someone whose unique passion and knowledge attract lucrative opportunities.
Texas Hold'em poker provides a practical application of the four types of luck. Each type has its role in the game, from the random draw of the cards (Blind Luck) to the strategic plays made based on your understanding of the game and your opponents (Luck from Motion and Luck from Awareness) to your unique playing style developed over time (Luck from Uniqueness). The skill lies in recognizing and maximizing each type of luck as they come, just as in the game of life.
Luck is a concept we can encourage and create to some extent. By understanding the four types of luck and the actions and behaviors that can encourage each type, we can increase our luck surface area, making us more likely to experience lucky events. Additionally, statistical analysis is crucial in determining the likelihood of certain events occurring. Understanding the P value and its significance in statistics can help us better understand the information from scientific studies and research findings.
(The ideas on the concept of improving luck : Sahil Bloom - @SahilBloom)