Think of it as the difference between being cut and being scarred.
Sadness is an emotional state. It happens to everyone and can triggered by anything from losing your phone to the death of a TV character.
Trauma is a recurring pain. Something severe enough has happened that will cause the trauma victim to remember the pain. The death of a family member may be very sad, but might not be traumatic. However, if they died because it was the fault of the individual in question (such as them drink-driving and causing an accident), they are almost certainly going to remember that they caused the death and experience the pain of doing so each time they think of their loved one, drive a car, drink, etc.
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