Trading and the Trader: Understand How It Works, Main Types, and First Steps for Beginners

Who is the Trader and How They Operate in the Market?

Trading is increasingly involving Brazilians seeking short-term operations in the financial market. At the center of this activity is the figure of the trader, a professional or enthusiast who buys and sells financial assets aiming to profit from price fluctuations.

Unlike those who invest with a long-term perspective, the trader focuses on opportunities that arise over shorter periods — ranging from minutes to a few weeks. The activity is primarily carried out through digital platforms, which provide fast execution, precision in operations, and access to sophisticated analysis tools.

The practical work of the trader involves continuous observation of economic, political, and corporate factors, identification of trends through charts and indicators, and quick decision-making when opportunities arise. It is not about random bets, but about operations based on analysis, strict discipline, and structured risk management.

Trading: Short-Term Negotiation in Variable Income

The term trading, derived from the English “trade,” (negotiation), specifically refers to short and very short-term operations carried out across various markets — Stock Exchange, currency, indices, commodities. The goal remains the same: to capitalize on price variations that occur in short cycles.

Unlike fixed income, trading integrates variable income, meaning results depend directly on market movement and volatility. This implies both opportunities for gains and higher exposure to risks if proper management is not applied.

Operations are conducted online, offering agility, full control over trades, and nearly instant execution of buy and sell orders.

Trader vs. Investor: Different Approaches in the Financial Market

Although they operate in the same environment, trader and investor follow quite different philosophies:

The trader focuses on taking advantage of quick price movements, exploiting volatility to generate profits in short cycles. Their attention is on technical analysis, precise timing of entry and exit, and very strict risk control — as small variations can significantly impact the outcome of the trade.

The investor, on the other hand, adopts a medium to long-term perspective. Their concern centers on economic fundamentals, the quality and potential of companies, gradual wealth building, and creating lasting value. They hold positions for extended periods — months or years — seeking consistent returns.

In terms of profile, trading attracts people with high risk tolerance and availability for daily market monitoring. Traditional investing is more suitable for those who prefer a less dynamic strategy, focused on structured financial planning.

Many participants combine both approaches: using trading for specific operations and investing for long-term goals.

Main Categories of Traders in the Market

There are different profiles and roles performed by traders, each adapted to specific contexts:

Institutional Trader
Works in large financial organizations such as banks, funds, and insurance companies. Handles large volumes of capital, follows corporate strategies, and has access to advanced tools and detailed market information.

Executor Trader (Broker)
Also called a broker, executes buy and sell orders as requested by clients. Does not define strategies but ensures operations happen accurately and quickly.

Sales Trader
Combines trade execution with commercial relationships. Besides processing orders, offers analysis, strategic ideas, and consultative support to clients.

Independent Trader
Works with their own capital, making all decisions independently. Can be a beginner or experienced, and fully assumes the risks and gains of operations.

Operating Styles: Different Ways of Trading

Traders also differ by the duration of their trades:

Day Trader
Opens and closes positions within the same day, capturing quick movements. Operations last minutes or hours, requiring intense concentration.

Scalper Trader
Operates in extremely short timeframes, seeking small repeated gains throughout the trading session. Speed and risk control are absolutely essential.

Swing Trader
Performs operations that last from one day to several weeks, capturing broader market movements through technical analysis and trend reading.

Position Trader
Holds positions for weeks, months, or even years. Although active in variable income, their methodology is closer to medium-term strategies.

High Frequency Trader (HFT)
Executes trades in seconds or fractions of a second, often using trading robots and automated algorithms.

Comparative Table: Main Trading Styles

How to Start Your Trading Journey: Step-by-Step

For those who want to begin in the activity, following a methodological structure is essential:

1. Identify Your Risk Profile
Perform a suitability test to understand your risk tolerance and the inherent fluctuations of variable income.

2. Invest in Education
Seek courses, books, and specialized content that build a solid foundation of knowledge about the financial market and technical analysis.

3. Choose Your Operating Style
Evaluate which strategy — Day Trade, Swing Trade, Scalping, or Position Trade — best aligns with your profile, availability, and risk aversion.

4. Set Clear Limits
Define your stop-loss points in case of loss (stop loss) and your profit targets (stop gain), never trading without these established criteria.

5. Choose a Reliable Platform
Look for fast execution, technical stability, and advanced analysis tools that facilitate operational work.

6. Practice Risk Management
Never concentrate all your capital in a single trade and monitor your results constantly and systematically.

How a Trader Generates Profit in Operations

The trader profits by identifying price movements before they complete and closing the trade at the planned moment. The concrete gain comes from the difference between the entry and exit prices of the asset, minus operational costs and considering the applied risk management.

Consider a practical example: a trader closely monitors a company’s stocks on the Stock Exchange. After analyzing detailed charts, they identify a support zone where the price historically reacts. Noticing signs of buying strength, they enter the trade buying the stock at R$ 20.00. Hours later, with the market rising, the price reaches R$ 21.00 — a level previously set as the target. At this point, they close the trade and realize the profit.

The same logic applies to sell operations. Identifying a downward trend, the trader sells the asset first and buys it back cheaper later, profiting from the devaluation. In both scenarios, what truly matters is not to win every trade but to control losses and ensure gains are larger than losses, ensuring consistency over time.

Pillars of a Successful Trader

Being a consistent trader goes beyond mastering techniques. The main foundations are:

• Continuous education — Markets evolve; learning never stops
• Operational discipline — Follow the planned strategy, avoid acting on emotion
• Emotional control — Maintain calmness during gains and losses
• Strict risk management — Protect capital in all trades
• Constant monitoring — Stay present and attentive to movements

A successful trader understands that consistent results come with time, deliberate practice, and ongoing learning — never with promises of instant gains. Testing first in a demo account, deeply understanding market functioning, and calmly defining strategies are recommended steps before trading with real resources.

Choosing a regulated broker aligned with your profile is the first concrete move to operate safely in the trading universe.

Start Your Journey: 3 Simple Steps

1. Register
Fill in your information completely and securely

2. Deposit Funds
Minimum deposit of 5 USD to start trading

3. Begin Trading
Access trading tools and platforms