Trader: Complete guide for beginners to understand what it is and how to get started

In recent years, more and more Brazilians are actively seeking to participate in the financial market through short-term trading operations. In this context, a fundamental figure emerges: the trader — professional or amateur who buys and sells assets, betting on rapid price movements to generate profits. But do you really know what a trader does? How do they operate? And, more importantly, is it possible to start this journey safely?

Understanding the concept of trading in the market

Before defining the trader’s role, we need to understand trading itself. The word comes from the English “trade” (negotiation) and describes short-term and very short-term operations carried out in markets such as Stock Exchange, currency exchange, indices, and commodities. The main goal is to profit from price fluctuations that occur over various intervals — from minutes to weeks.

Unlike fixed income, trading is part of the variable income universe, where results depend directly on market oscillations. Operations are conducted digitally, through specialized platforms that ensure quick execution and full control of orders.

Who is the trader? Knowing their role

The trader is the “negotiator” of the financial market — someone who continuously buys and sells assets aiming for short-term profit. Unlike the traditional investor who considers a medium or long-term horizon, the trader observes the market daily, studies charts and indicators, monitors economic scenarios, and makes quick decisions in response to price changes.

In practice, a trader does not operate based on guesses but on strategic analysis. They observe economic, political, and corporate factors, identify patterns and trends, and act swiftly when opportunities arise. These trades can last from a few minutes to several days or weeks — everything depends on the chosen strategy. The mechanism is simple: buy at one price and sell at a higher value, or profit from price drops through short selling operations. Success, however, requires strict discipline, goal setting, risk management, and emotional balance.

Trader and investor: different strategies in the same market

Although they work in the same environment, trader and investor adopt fundamentally different approaches. The trader focuses on short-term movements, using technical analysis to identify quick opportunities. Their success depends on timing — entering and exiting at the right moment — and meticulous risk control, as small price variations directly impact the outcome.

The investor, on the other hand, favors a medium and long-term view. They prioritize economic fundamentals, company quality, and value creation over time. Instead of reacting to daily fluctuations, the investor maintains positions for months or years, seeking stable returns and lower turnover.

In terms of profile, trading attracts people with higher risk tolerance and availability for constant monitoring. Traditional investing is more suitable for those who prefer a less dynamic strategy. In practice, many operators combine both approaches — using trading for specific opportunities and investing for long-term goals.

Main categories of traders in the market

The reality is that traders are not all the same. There are different profiles depending on the environment and role in the market:

Institutional trader — Operates in large financial organizations such as banks, funds, and insurance companies. Handles high volumes of capital following the institution’s strategies, with access to advanced tools and detailed information.

Executor broker (broker) — A professional who executes buy and sell orders for clients. Does not define strategies, only ensures precision and efficiency in execution.

Sales trader — Combines negotiation with commercial relationship. Besides executing orders, offers analysis, ideas, and strategic support to clients in a consultative manner.

Independent trader — Operates with their own resources and makes all decisions independently. Fully assumes risks and responsibilities for the results obtained.

Operating styles: how traders work

Beyond the previous categorization, there are distinct operational styles mainly defined by the duration of positions:

Day trader — Opens and closes positions within the same day, seeking to exploit quick movements. Operations can last minutes or hours, requiring high concentration and continuous monitoring.

Scalper trader — Works on extremely short timeframes, aiming for small repeated gains throughout the day. Speed and risk control are vital in this model.

Swing trader — Maintains positions from one day up to several weeks, capturing broader movements through technical analysis and trend reading.

Position trader — Holds positions for weeks, months, or even years. Although operating in variable income, their approach is similar to medium-term strategies.

High Frequency Trader (HFT) — Executes operations in seconds or fractions of a second, usually using robots and automated algorithms.

###Comparison between the main styles

Can you become a trader? Who is prepared

The answer is straightforward: anyone can be a trader, regardless of age or available capital. However, trading involves high risks and is more suitable for aggressive investors who understand the volatility of variable income.

Certain factors significantly increase the chances of success:

• Organized financial management
• Solid knowledge of the financial market
• Emotional and psychological balance
• Access to reliable and well-equipped trading platforms
• Consistent discipline in decision-making

Step-by-step: how to start your journey as a trader

For those who decide to venture into trading, following an organized structure is essential:

1. Identify your investor profile — Understand your risk tolerance through suitability tests. This determines which strategies are viable for you.

2. Study the market thoroughly — Courses, books, and specialized content build a solid foundation. Knowledge is the first defense against unnecessary losses.

3. Choose your operational style — Day Trade, Swing Trade, Scalping, or Position Trade require different skills and dedication. There’s no better or worse, only what suits your profile best.

4. Set goals and risk limits — Clearly define your profit (stop gain) and maximum acceptable loss (stop loss) before any operation.

5. Select an appropriate platform — Speed, stability, and robust analysis tools are fundamental to execute your strategies efficiently.

6. Implement strict risk management — Never concentrate all capital in a single operation. Continuously monitor your results to identify patterns and improvements.

How does the trader generate profit? Understanding the mechanism

The trader makes money by identifying price movements before they conclude and closing the operation at the predicted moment. Profit results from the difference between the entry price and the exit price of an asset, always considering operational costs.

Consider this practical example: a trader monitors a company’s stocks on the Stock Exchange. After detailed analysis of the chart, they identify a support zone where the price historically reacts. Noticing signs of buying strength, they execute a purchase at R$ 20.00. Hours later, with the market favorable, the price reaches R$ 21.00 — their previously set target level. At this point, they close the trade and realize the gain.

The same principle applies to short selling operations. When identifying a downward trend, the trader can sell first and buy back cheaper later, profiting from the devaluation. In both scenarios, the critical aspect is not to win every trade but to control losses and keep gains larger than losses, ensuring consistency over time.

Building a successful trajectory as a trader

Being a consistent trader goes beyond technique. The fundamental pillars include:

• Continuous learning and adaptation to market changes
• Discipline in executing defined strategies
• Emotional control in the face of uncertainties
• Sophisticated risk management
• Constant monitoring of market behavior

A successful trader understands that results are built over time, through deliberate practice and ongoing learning — never through promises of quick gains or magic formulas.

If you want to take the first steps as a trader, the most important thing is to have a reliable platform that offers robust analysis tools, quick execution, and risk management resources. Before trading with real resources, test the demo account, understand how markets work, and define your strategy calmly. Choosing a regulated broker suitable for your profile is the first step to operate safely in the trading universe.