There is only one real difference between investment and gambling. In investment, one can expect to make a profit over the long run but gambling will always result in a loss over the long run although the gambler may not know it.
There are certain situations in the world of investment which resemble gambling and investors are well advised to keep clear of them.
1. To buy shares when the market is at its "hottest" is definitely gambling because like all bull markets, once everyone interested has been sucked in, there are no more lambs left and the market can only go down.
2. To sell shares which have been held through a long period of decline is also a gamble because the market is cyclical; it will recover after a long period of decline.
These are among the many examples of the "sure lose" situations in investment similar to gambling.
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