Have you guys ever go play black jact at the casino? How many of you guys have run into this incident where won a few hundred dollars but didn't quit and lost it all back in less than 5 minutes? Well, that is because you didn't know the odd of probability. For instance, you play black jack and lost twice in a row. You then think that the third time around you will win so you put more money on the table. The dealer then beat you. The fourth time, you put even more money on the table because you're thinking he's already beaten you 3-times in a row you will win the fouth time. The dealer then beat you again. Now, you say the fifth time you will win and put all your money on the table. Again, the dealer beat you. You lost all your money and go home empty.
When you watch high rollers, those that play atleast $100 a hand on black jack table. If you watch them play closely, you will see that when they won twice in a row, they add more money to the table. But when they lost two or three times in a rwo, they bet the table's minimun. And when they won two out of three times consistantly, they bet close to the table's maximum bid. If the table's maximum bid is $1000, they will bet around $700 to $800 a hand.
So for the example above about the coin toss.. If it landed 4 times tails in a row, the chances are the fifth time will be tail also.