Investing and trading are two different methods of attempting to profit. The goal of investing is to gradually build wealth over an extended period of time through the buying and holding of a portfolio of stocks and other investment instruments. Trading, on the other hand, involves the more frequent buying and selling of stock, commodities, currency pairs or other instruments, with the goal of generating returns that outperform buy-and-hold investing.
Trading could be short term investment or it could be long term investment as well. Investment is very long term trade. It is the frequency that matters and difference between investment and trading. Investment when done in something it is expected to have lock in period of at least five year or more. In certain situation this period is less as well. Investments done via mutual funds check and review their investment decision on yearly or bi-yearly basis. Based on the market mutual fund operator decides further action plan.
Trading is high frequency activity for which dedicate time is required. It is kind of full time job. For some invest two to three hours on trading on daily basis. Trading requires keen eye on the market movement, quick to respond ability.
Overall who have time and knack for picking up correct buy and sell order should seriously think about the trading.