When you're talking about the stock market, there are two main ways to make money: trading and investing. Trading is a short-term strategy where you try to make quick profits by buying and selling stocks within a day or week. Investing, on the other hand, is a long-term approach where you buy stocks with the hope that they will go up in value over time so you can sell them for a profit later on. The main difference between trading and investing is that investors are not as concerned with daily movements in the market as traders are. They care more about the inner workings of a company and how it will do in the long run. Traders, on the other hand, only care about whether a stock is going up or down at any given moment so they can make quick profits. Another key distinction is that investors typically only invest in long positions (meaning they only buy stocks), while traders may go both long and short (meaning they can buy and sell stocks). This gives traders an advantage when the market goes up or down, since they can benefit from both higher and lower stock prices. Finally, day traders trade within a 24-hour period while investors can trade as many times as they want during this time frame. However, investors must stick to their long-term investment plan in order to make profits over time. Trading can be done in both active or passive modes; investing is always passive and does not rely on daily movements for profit.