It is process of putting idle money (savings) to work so that idle sitting money can grow and meet inflation and will help a person to meet his future goals. It is more like a cricket test match. Players here are highly technical and follow fundamental approach. Day to day fluctuations doesn’t matter in investment.

It is more like a business activity, buying and selling stocks or derivatives and encashing near term stock market fluctuations. It need active participation and it is more like one day cricket match and converts to 20-20 IPL if it is done intraday. Trader needs completely different skill set as compared to investment.

Investment is a buy and hold kind of approach and its period varies from 3-5 years ( short term), 7-10 years (mid-term) and 11-25 years (long term). This data is to provide you an approximate idea.

Trading is a regular buy and sell kind of activity and can be divided into following categories: Positional trader : Months to year Swing trader : weeks to months Intraday trader : No overnight position Scalp trader : Position held for seconds to minutes

Aim of retail investor is to grow his idle money so that he can beat inflation and able to meet his future goals. So investment is done with a point of view of very lower risk as returns expected are lower.

Trading is much higher risk and reward activity as compared to investment.

Investment is an art. As in a cricket test match we can see a real art of player. More technical and fundamentally strong and patience full game is seen in test match. Similarly, investor should have a combination of fundamental knowledge, technical knowledge and high level of patience more like an artist.

Trading is like an one-day match where skills are more important to hit fours and sixes. Fundamental knowledge doesn’t play much of the role, techniques also not important you create your room to hit sixes. It needs a combination of strong psychological understanding and a trading method.