Simple Trading: A Practical Guide for Those Who Want to Start in Variable Income

Brazil is experiencing a significant shift in investor behavior. More and more people are seeking alternatives beyond traditional fixed income, attracted by the potential gains of the capital markets. In this scenario, trading emerges as a modality that sparks great interest — but also raises many questions. After all, what is the difference between investing and trading? Who can truly profit from it? And where should a beginner start if they’ve never traded before? This guide provides clear answers for those who want to understand the fundamentals of this activity.

Understanding the Concept of Trading

Trading refers to buying and selling assets with a short-term horizon. Unlike traditional investing, which aims for returns over years, trading takes advantage of price variations that occur in minutes, hours, days, or weeks in the financial market.

These operations happen in real time, through digital platforms that connect the trader to stock markets, forex, indices, and commodities. The main goal is simple: buy at one price and sell at a higher price, or profit from declines by executing short sales.

Unlike fixed income, which offers predictable returns, trading falls under the category of variable income — its results depend directly on how the market behaves.

Who Are Traders and How Do They Operate?

A trader is fundamentally an active market participant. Their main role is to analyze economic scenarios, charts, and technical indicators to make quick decisions in response to price changes.

Unlike investors who delegate their portfolios and monitor results sporadically, traders stay connected to the market daily. They observe news, economic data, corporate movements, and trends, translating this information into operational opportunities.

In practice, a trader’s operations are based on structured analysis and risk management, never on random bets. Each market entry follows a plan — with a defined profit target and a maximum tolerable loss level.

Different Trader Profiles

The term trader actually covers different professional profiles:

Institutional Traders operate with large capital volumes within banks, funds, and insurance companies. They use sophisticated tools and follow strategic protocols established by their organization.

Brokers execute client orders efficiently and accurately, acting as specialized intermediaries between the client and the market.

Sales Traders combine execution with advisory services, offering analysis and strategic ideas to their clients while executing orders.

Independent Traders work with their own capital independently. They can be beginners or veterans — in both cases, they assume all risks and returns of their operations.

Operating Styles: Understanding the Modalities

The duration of trades is the key factor that distinguishes the main trading styles:

Day Traders open and close all their positions within the same day. These trades can last from minutes to a few hours, requiring intense focus and quick reactions.

Scalpers operate in even shorter timeframes, aiming for small, repetitive gains throughout the day. Speed in execution and rigorous risk control are absolutely essential in this style.

Swing Traders keep positions open from one day to several weeks, capturing medium-term market movements. This approach combines technical analysis with reading broader trends.

Position Traders hold trades for weeks, months, or even years. Although they operate in variable income, their operational logic is closer to medium-term strategies.

High Frequency Traders execute trades in seconds or milliseconds, usually through robots and algorithms. This is a highly specialized and technological modality.

Trading versus Investing: Two Distinct Strategies

Although they operate in the same market, trading and investing follow completely different logics.

A trader seeks to capitalize on rapid price movements, reacting to daily oscillations and capturing short-term opportunities. Their analysis focuses on technical charts, timing of entry and exit, and strict risk control.

An investor, on the other hand, works with medium to long-term vision. Their interest lies in company fundamentals, value generation over time, and consistent wealth growth. They hold positions for years, without reacting to daily fluctuations.

In terms of personal profile, traders tend to have higher risk tolerance and availability to monitor markets continuously. Traditional investors prefer less dynamic strategies, focusing on structured financial planning.

In practice, many participants combine both approaches — using trading for specific operations and investing for long-term goals.

Fundamental Requirements to Get Started

Anyone can technically become a trader, regardless of age or initial capital. However, trading demands specific characteristics and conditions:

Risk Tolerance: Genuine understanding that losses are part of the process and emotional readiness to handle adversities.

Financial Education: Knowledge built through courses, reading specialized books, and following quality content.

Emotional Control: Ability to stay composed during losses and avoid impulsive decisions.

Proper Tools: Access to a reliable trading platform with stability, speed, and robust analytical features.

Operational Discipline: Consistently following the established plan, respecting predefined risk limits.

The Practical Path: How to Start

For those deciding to enter trading, following a structured sequence significantly increases the chances of success.

First step: Identify your investor profile through (suitability tests). This helps determine your true risk tolerance.

Second step: Invest in education. Online courses, books, market analyses, and following experts build the necessary theoretical foundation.

Third step: Choose the operational style that best fits your available time and profile. Day trading requires full dedication; swing trading allows more flexibility.

Fourth step: Set clear goals and risk limits. Decide where you will enter the trade, where to take profit (stop gain), and where to cut losses (stop loss).

Fifth step: Use a reliable and regulated platform. Technical stability is non-negotiable in trading.

Sixth step: Risk management must be obsessive. Never concentrate all your capital in a single trade. Continuously monitor your results.

How Traders Make Profits

Profit in trading comes from correctly identifying price movements before they complete, combined with the appropriate timing of exit.

Specifically, profit is the difference between the entry price and the exit price of the asset, minus operational costs such as brokerage and fees.

Imagine a trader analyzing listed stocks. After examining technical charts, they identify a support level where the price historically reacts. Detecting signs of buying pressure, they buy the stock at R$ 20.00. Hours later, with the market moving upward, the price reaches R$ 21.00 — their previously calculated target. At this point, they close the trade and realize the profit.

The same principle applies to short sales: the trader identifies a downward trend, sells the asset at a high level, and rebuys it later at a lower price, profiting from the devaluation.

The key is not to win 100% of trades. True success results from controlling losses and letting gains be larger than losses, ensuring consistency over time.

The Path to Consistency and Success

Successful traders do not emerge overnight. Their success is based on solid pillars:

• Continuous Education: Markets evolve; traders need to keep learning.
• Operational Discipline: Follow the plan, even when emotions suggest otherwise.
• Emotional Control: Fear and greed are traders’ biggest enemies.
• Rigorous Risk Management: Each trade must have well-defined loss limits.
• Market Monitoring: News, economic data, and trends require constant attention.

Significant results do not come from promises of quick wealth but from consistent dedication, deliberate practice, and accumulated learning.

For beginners, it is highly recommended to test strategies on demo accounts before trading with real money. This allows understanding the practical functioning of the market without real risks.

The true first step is to choose a regulated broker suitable for your profile — a choice that provides a safe foundation to build your trading journey.