Karma

Karma refers to the thoughts you allow to ruminate about your head. If you allow the thoughts to persist, eventually they will become a reality. An example is to ruminate about an addiction. If you keep thinking about the want, you will eventually breakdown and get it. Another example is cheating on a significant other. If you keep thinking about another person, your thoughts will eventually drive your actions into a reality.

Dharma

Dharma is your nature propensity to think in a certain way or your nature to have certain thoughts. Examples would be someone who has an addictive personality or someone who is driven to be over competitive.