For those seeking a comprehensive reference book on the mechanics of many types of risk-taking, this is it. It covers the major forms of gambling – stock markets, National Lottery, casino and card games, horse racing and general sports betting. Although the density of essential technical detail is breath taking, the authors display a masterful clarity in steering the reader through the rough waters that threaten every investor. There are detailed tables that are easy to follow. For example, on roulette:

On all subjects covered, there are such tables, superbly highlighted. There is also a glossary at the back of the book which explains such terms as ‘arbitrage’, ‘pass line’, ‘futures contract’ and so on. There is a marvellous cameo about the £860 billion collapse in 1995 of the supposedly blue chip Barings Bank. One rogue trader, Nick Leeson, bet that the Nikkei index would remain stable. When an earthquake struck Japan, the index dived, leaving Barings millions in debt. Leeson was then forced to chase debts, resulting in losses escalating into billions.

The chapter on the National Lottery is illuminating:

Indeed, chance has no memory.

On horse racing there is a mountain of statistics. In one sample of 2,000 horses from one season, only eight won three times in a row. Yet punters usually make winning form the basis of selections. There is emphasis on using form ratings allied to betting knowledge. For example, if a punter’s form assessment makes a horse’s chance 3/1, but the bookmakers are offering 5/1 against the horse, that is the time for the punter to strike. Yet when it comes to finding winners, key aspects are ignored – the condition of the horses in the paddock, the way a horse moves to the post, the freedom of its action on the going. Gambling is an emotional pursuit – on a winning streak the gambler is confident, but on a losing run the gambler can become desperate, illogical and seek, like Nick Leeson, to retrieve his losses at a time when spirits are low.

To many of us gambling is addictive, like drinking and smoking. Yet this book is relentlessly practical. There are the golden rules of gambling:

But as bookmakers constantly record profits – after costs – of hundreds of millions of pounds, one has to accept that may people ignore this obvious advice and commit the cardinal sin of chasing losses.

The great advantage of this book is that it allows investors to choose the particular activity that suits their temperament – whether high risk or low risk. Whatever knowledge the reader may possess on one subject, this book will not only extend that knowledge but also illustrate other areas where limited information may be currently held. For example, for those ignorant of the dice game ‘crap’, there is a detailed illustration of the table, followed by a list of main bets, the rules of the game, and the chances against every combination being successful. In fact the few pages on this game give you all the details you could possibly need to play logically.

Each activity in the book is given stars for overall risk taking and overall reward taking. For example, the National Lottery, which is pure chance, has four stars for risk but balanced by three stars for reward. While a more cerebral activity such as spread betting also has four stars for reward, yet only one star for risk.

With many books, one read-through is sufficient; the substantial achievement of this book is that one can continually refer to the many jewels present. The constant theme is logic, logic - and yet more logic. Without a strategic approach to investment you are lost in a sea full of sharks. To be successful in gambling you need to be clinical yet fearless. What better advice than this:

Such common sense as this is so often ignored to their cost by so many Jack-the-lads attracted by the superficial glamour of gambling. Clearly, to get rich quick you need to possess detailed knowledge – and you will find plenty of clues to success if you study this book closely.