What is the difference between investing and trading?

Investing generally means buying shares with the intention of holding them for an extended period, months to years, based on a view of the company’s underlying business and long-term value, with gains taxed as capital gains (short-term or long-term depending on holding period) rather than business income. Trading means buying and selling more actively, sometimes within the same day (intraday) or over shorter holding periods, aiming to profit from price movement rather than long-term business value, and depending on frequency and intent, trading gains can be classified as business income rather than capital gains, which changes both the applicable tax rate and rules around loss set-off. The two aren’t mutually exclusive, plenty of people do both with clearly separated portions of their capital, but you keep the distinction clear in your own approach and record-keeping, since mixing the two without a clear strategy, or without understanding the different tax treatment, can create confusion around both risk management and tax filing later.