Trader: Understand the Profession, Trading Styles, and How to Start Your Journey

More and more Brazilians are seeking to actively participate in financial markets in pursuit of short-term returns. If you are interested in quick and dynamic trades, you need to understand who the trader is, how this activity works, and whether it suits your investor profile. This article provides a comprehensive overview of the active trading universe, different professional profiles, operational strategies, and a practical step-by-step guide for those who want to get started.

The Fundamental Concept: What is Trading?

Trading is the English term for negotiation. In practice, it refers to the buying and selling of assets over short and very short time horizons, aiming to profit from rapid price fluctuations. Unlike traditional investment strategies, trading occurs continuously and actively in the market.

These operations take place in various environments: Stock Exchange, foreign exchange market, indices, commodities, and others. The key difference is the timeframe — while investors think in months or years, traders focus on hours, days, or a few weeks.

All trades are conducted entirely online, through specialized platforms that ensure speed, full control of operations, and immediate order execution. As part of variable income, trading results depend entirely on how the market behaves.

Who is the Trader?

A trader is an active negotiator who buys and sells assets with a clear goal: to generate profit by exploiting price movements. Unlike the conventional investor, the trader follows the market daily, studies charts and technical indicators, analyzes economic scenarios, and makes quick decisions based on emerging opportunities.

The essence of the activity is analyzing trends, identifying entry and exit points, and executing operations with precision. Success in this area depends less on luck and more on discipline, emotional control, a well-defined strategy, and rigorous risk management.

Trader vs. Investor: Two Different Approaches

Although they operate in the same market, trader and investor work in very different ways.

Trader seeks to capitalize on rapid market movements, exploiting volatility in short-term trades. Their analysis is predominantly technical, focusing on charts and indicators. Entry and exit timing are crucial, as small price variations directly impact results.

Investor adopts a longer-term view. Their interest lies in economic fundamentals, company solidity, and consistent patrimonial growth. They hold positions for months or years, seeking stable returns and less operational movement.

In terms of profile, trading attracts people with a higher willingness to monitor the market constantly and with high risk tolerance. Traditional investing is more suitable for those who prefer less dynamic strategies, focusing on planning and gradual wealth building.

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

The Different Trader Profiles

The financial market includes traders with distinct functions and characteristics:

Institutional Trader: Works in large financial organizations — banks, investment funds, insurance companies. Handles large volumes of capital, following corporate strategies and using sophisticated tools and detailed market data.

Executor (Broker) Trader: Professional responsible for executing buy and sell orders for clients. Does not define strategy, only ensures operations are carried out accurately and quickly.

Sales Trader: Combines execution of operations with commercial relationships. Besides executing orders, offers analysis, ideas, and strategic support to clients in a consultative manner.

Independent Trader: Operates with own capital and makes all decisions independently. Can be a beginner or veteran, but bears all risks and benefits of their operations.

Operational Strategies: The Main Styles

Traders also differ by the duration and frequency of their trades. Each style requires different skills and characteristics:

Day Trade

The day trader opens and closes all positions within the same day, taking advantage of quick movements. Operations can last minutes or hours, demanding high concentration and quick reactions.

Scalping

Scalpers operate in extremely compressed timeframes, seeking small repeated gains throughout each trading session. Speed of execution and absolute discipline in risk control are essential.

Swing Trade

Trades that last from one day to several weeks. The goal is to capture broader market movements, combining technical analysis with reading medium-term trends.

Position Trading

Positions held for weeks, months, or even longer periods. Although it operates in variable income, it approaches medium-term strategies with a less reactive approach.

High Frequency Trading (HFT)

Operations executed in seconds or fractions of a second, typically with trading robots and automated algorithms that process large volumes instantly.

Comparative Table of Operational Styles

Who Can Be a Trader?

Theoretically, anyone can become a trader, regardless of age or initial capital. However, successful trading requires certain characteristics and conditions:

• Financial organization — controlling cash flow and expenses
• Market knowledge — studying history, concepts, and dynamics
• Emotional control — not letting fear or greed guide decisions
• Access to quality platforms — tools that ensure speed and reliability
• Operational discipline — following the plan without improvisation

Trading is more suitable for bold investors who understand the risks of variable income and have the psychological disposition to handle constant volatility.

Practical Roadmap: How to Start Trading

Following a structured path significantly increases your chances of success:

Step 1: Identify Your Investor Profile Perform a suitability test to understand your risk tolerance. This determines if trading is truly appropriate for you.

Step 2: Develop Solid Knowledge Courses, specialized books, and quality content build the necessary theoretical foundation. Study concepts, technical indicators, and market history.

Step 3: Choose Your Operational Strategy Day Trade, Swing Trade, Scalping, or Position Trading — each requires different skills. Choose according to your personal style and availability.

Step 4: Set Goals and Risk Limits Clearly define your profit (stop gain) and maximum acceptable loss (stop loss) before each trade. This planning is critical.

Step 5: Select a Reliable Platform Speed, stability, analytical tools, and technical support ensure precise execution of your trades.

Step 6: Practice Risk Management Never concentrate all your capital in a single trade. Diversify, constantly monitor your results, and adjust your strategy as you learn.

How Does a Trader Generate Profit?

Trader profit comes from the difference between the purchase price and the sale price of an asset, minus operational costs. The key is to identify movements before they complete and exit at the planned time.

Consider this practical example: A trader studies a stock chart and identifies a support zone where the price historically reacts. Observing buying signals, they enter the trade buying at R$ 20.00. Hours later, with the market rising, the price reaches R$ 21.00 — their predefined target. They close and realize the profit.

The same concept applies to sell operations. If the trader identifies a downward trend, they can sell first and buy back cheaper later, profiting from devaluation. In both cases, the fundamental is not to win every trade but to control losses while maintaining proportionally larger gains, ensuring consistency over time.

The Pillars of a Successful Trader

Achieving consistent results in trading goes beyond technique:

• Continuous learning — markets evolve, strategies must adapt
• Operational discipline — follow the established plan without emotion
• Emotional balance — do not react to fears or fleeting euphoria
• Impeccable risk management — protecting capital is a priority
• Constant monitoring — stay alert to market dynamics

A consistent trader understands that results come with time, deliberate practice, and ongoing learning — never with promises of quick wealth.

If you are ready to start, the first step is to choose a regulated broker, with a reliable platform and suitable analytical tools. Use a demo account to understand how it works without risking real capital, carefully define your strategy, and begin your trading journey with preparation and security.