The primary distinction between trading and investing is that the former allows you to profit from market volatility. Short-term gains and losses are ignored in investing in favour of long-term gains realised as the company grows. A trader will focus on the stock's perceived market value. He or she would be unconcerned about the underlying company's financial health. An investor, on the other hand, would be more concerned with the company's financial performance than with the share's trends.
Trading entails holding a stock or financial instrument for a day or until it reaches a short-term target. Investing entails holding a stock for an extended period of time. Trading is the act of selling a stock or financial instrument as soon as it reaches the target price or crosses the loss threshold (also called the stop loss price). Investing entails avoiding market downtrends and not selling unless absolutely necessary.