Quora Answer: Which is More Profitable - Investing or Trading?

The following is my answer to a Quora question: “Which is more profitable - investing or trading?”

For the average person, investing makes more money, especially over an extended investment horizon, with the gains compounded.  It is relatively safe, and the returns are steady.  Trading may have the potential to earn more in the short term, but there is a risk of losing more as well.  Trading pays off with larger fund managers because their movement influences the market and affect market sentiment.  Most people do not have that sort of capital or asset under management.  They are at the mercy to market sentiment.  That means the vast majority will lose more than they earn.