One of the biggest challenges faced by anyone who wants to use today's financial markets to increase their wealth is determining whether they will be INVESTING or TRADING.
The two are clearly related, but they are also distinct and if you can't define which path you are taking, the markets will eat you for lunch.
Luckily, determining whether you are an investor or a trader is not complicated.
A step which is frequently skipped, yes, but complicated? No.
Here is how to tell the difference between investing and trading:

• INVESTING - this mode of market participation involves buying into a company for benefit BEYOND the stock's price appreciation.
  Think about the investment you've made in your home or in an education; it is hoped that the value of either one will go up over time, but the primary benefit comes from simply having that resource at your disposal.
  In the same way, investing in a company should entail some immediate value to you as a shareholder - whether that be a meaningful say in company management or receiving a healthy dividend, you get something simply because you are part owner in the firm.
  Unfortunately, most people who consider themselves investors are really just really infrequent traders.
  
• TRADING - the trader buys and sells company stock, options on those stock shares, currencies, commodities and other financial instruments specifically in order to make a profit on price movement.
  Dividends or voting rights at board meetings might come along as part of the package, but they are not the goal behind any purchase or sale.
  

While proponents of investing will tell you their path is better than trading (and vice versa), a skilled market participant can make money either way.
The key is to be clear on what you are doing: why are you entering a position, what benefit do you expect to receive, and under what circumstances will you close that position.
Stay true to your rationale, and you have made the first step toward bringing some cash home from the markets.