Investing and trading shares both involve participation in the stock market, but they differ in approach, time horizon, and goals. Investing is the act of buying shares with the intention of holding them for the long term. The main goal is to build wealth gradually through capital appreciation, dividends, and reinvestment. Investors often focus on the fundamental strength of a company, such as earnings, revenue growth, management quality, and industry potential. The strategy is generally patient, with less concern about short-term price movements, since the aim is to benefit from the company’s growth over years or even decades.

Trading, on the other hand, is more focused on short-term opportunities. Traders seek to profit from price fluctuations that can occur within minutes, days, or weeks. Instead of studying long-term fundamentals, they often rely on technical analysis, chart patterns, and market trends to make decisions. Trading requires constant monitoring, quick decision-making, and risk management because market volatility can bring both rapid profits and losses.

In short, investing prioritises long-term stability and wealth creation, while trading emphasises short-term gains from market movements. Both approaches can be profitable, but they require different skills, mindsets, and risk tolerance. Choosing between the two often depends on financial goals, time commitment, and personal comfort with risk.

Investing and trading shares differ mainly in time horizon, strategy, and risk approach. Investing focuses on long-term growth by buying shares and holding them for years, often to benefit from company expansion, dividends, and compounding returns. Investors typically prioritise fundamentals such as earnings, market position, and management quality. Trading, on the other hand, is short-term and aims to profit from frequent price movements. Traders rely more on technical analysis, market trends, and timing to enter and exit positions quickly. While investing is generally less stressful and suited for building wealth steadily, trading demands constant monitoring, quick decision-making, and tolerance for higher risk. In short, investing builds wealth over time, while trading seeks to generate faster, often smaller but more frequent profits.

The core difference between investing and trading shares lies in the timeframe and primary objective. Investing is a long-term strategy focused on building wealth gradually over years or decades. Investors buy and hold shares of companies they believe will grow fundamentally, benefiting from capital appreciation and dividends.

Conversely, trading is a short-term approach aiming to generate profits from frequent market fluctuations. Traders capitalise on price volatility over periods ranging from seconds to months, prioritising technical charts over a company’s intrinsic value. While investing embraces a "buy-and-hold" philosophy, trading is an active pursuit of quicker, more frequent gains.