Paul,

The main issue I have with your analysis is that the "professional" punters on horse races etc is not gambling. They are limiting losses and executing risk management criteria in a not too dissimilar manner to our "professional" share investor - and so "fails" the gambling test. They are not risking much in hope of a larger gain.

A share investor who does NOT have a trading plan, and who does NOT have a risk & money management plan in place (and actually execute same) IS gambling. Just as the average person placing a bet on a horse race IS gambling.

The distinction is in the planning & execution of a risk & money management techniques employed by the "professional" as opposed to the "gambler" - and NOT the product (shares or horses) that they use as their investment product.