Investing takes a long-term approach to the markets. 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, basket of stocks, mutual funds, and other investment instruments. On the other hand, trading involves short-term strategies with the motive of maximising returns in the short run. Trading involves more frequent transactions and has high risk associated with it. Traders sell the stocks if the price goes higher. Trading is a skill of timing the market, whereas investing is the art of creating wealth by compounding interest and dividends over the years.