Trader in the financial market: uncovering the profession and the first steps to trade

Brazil has been witnessing exponential growth in the participation of individuals directly involved in short-term financial operations. Many of these participants seek to better understand who is responsible for buying and selling assets, exploring daily market fluctuations in search of profitability. This professional is the trader, a fundamental figure in the world of variable income operations. But what exactly is their role, how do they profit, and most importantly, how to start a journey in this area with responsibility and knowledge? This comprehensive guide answers these questions, covering the fundamentals of trading, different categories of professionals, operational models, and practical steps for those who wish to begin.

Trading: definition and functioning in the capital markets

To understand the trader’s role, it is first necessary to grasp what trading represents in the financial context. The concept refers to transactions executed over short and very short timeframes, carried out through stock exchanges, currency markets, indices, commodities, and other markets. The main goal is to capitalize on price variations that occur within periods ranging from minutes to a few weeks.

Unlike fixed income, trading falls under the category of variable income, meaning that results are intrinsically linked to market fluctuations. All operations are conducted digitally, through electronic platforms that facilitate speed, transparency, and immediate execution of transactions.

Who is the trader and what is their function?

The term trader, translatable as negotiator, designates the individual who performs active buy and sell transactions of assets, focusing efforts on short-term profits. This professional monitors market dynamics daily, studies economic scenarios, analyzes charts and technical indicators, and reacts promptly when opportunities arise.

Unlike the traditional investor profile, the trader does not prioritize accumulating wealth over extended periods. Instead, they focus on windows of opportunity created by price volatility. Their operations can be extremely brief, lasting just a few minutes, or extend over days or a few weeks, depending on the adopted strategy.

In daily practice, the trader uses structured analysis and strategic methods to base their decisions, not random bets. They observe political, economic, and corporate variables, identify movement patterns, and act when conditions align. Success in this activity is fundamentally tied to four pillars: strict discipline, clear goal setting, effective risk management, and emotional balance.

Trader and investor: practical convergences and distinctions

Although both operate within the same financial ecosystem, the strategies of a trader and an investor differ substantially. The trader seeks to capitalize on short-term price movements, exploiting volatility to generate returns through agile operations. Their arsenal includes in-depth technical analysis, precise timing of entry and exit, and rigorous exposure control, as small fluctuations directly impact the outcome.

The investor, on the other hand, adopts a medium- and long-term perspective. Their decision criteria are based on solid economic fundamentals, company quality, long-lasting value generation, and progressive wealth expansion. Instead of reacting to daily fluctuations, the investor maintains their positions over extended periods, aiming for stable returns and reduced transaction turnover.

Regarding behavioral profile, trading attracts individuals with high risk tolerance and availability for continuous market monitoring. Conventional investing is better suited for those seeking a less intense approach, focused on long-term financial planning and progressive wealth building.

Many market participants, in reality, combine both approaches: they use trading for specific opportunities while maintaining investments with a more distant time horizon.

Professional categories of traders

Participation in the financial market is subdivided into different profiles, each with distinct responsibilities and characteristics.

Trader in financial institutions — Works in large corporations such as banks, investment managers, and insurance companies. Handles significant resource volumes and follows strategic protocols established by the organization, supported by sophisticated tools and detailed market information.

Trader executing (broker) operations — This professional performs buy and sell transactions for third parties, ensuring precision and speed in execution. They do not formulate the strategy, only implement it efficiently.

Sales trader — Combines negotiation activities with commercial relationships. Besides executing orders, they provide recommendations, technical analyses, and strategic support to clients, exercising a consultative role.

Independent trader — Works with their own capital, fully assuming operational decisions. They can be at any experience level but bear alone the risks and benefits of their operations.

Operational models: variations in timeframes and strategies

Trading activity encompasses different approaches, mainly distinguished by the duration of positions.

Day trading: same-day operations

The day trader opens and closes all positions within a single trading session, taking advantage of rapid movements and intraday fluctuations. These operations can last from a few minutes to a few hours, requiring high vigilance and concentration.

Scalping: small and frequent gains

The scalper operates on extremely short horizons, seeking multiple small gains throughout the day through successive operations. Operational precision, execution speed, and effective risk management are essential conditions.

Swing trading: capturing intermediate trends

The swing trader performs operations that last from one day to several weeks. The goal is to capture broader market movements, relying on technical analysis and reading established trends.

Position trading: medium-term approach

The position trader maintains open positions for weeks, months, or even annual periods. Although operating in variable income, the methodology is closer to medium-term strategies, focusing on structural changes.

High Frequency Trading: algorithmic operations

In this modality, transactions occur at intervals of seconds or fractions of a second, usually automated by robots and specialized algorithms.

Comparative table: Day Trading, Swing Trading, and Scalping

Who can practice the trader profession?

Legally, anyone can act as a trader, regardless of age or available initial capital. However, this activity involves high risks and is more suitable for aggressive investors who have a deep understanding of variable income fluctuations and their implications.

Certain factors significantly enhance the likelihood of success:

• Organization and financial planning
• Solid knowledge base about financial markets
• Ability to maintain emotional balance under pressure
• Access to quality and reliable trading platforms
• Consistency in applying operational discipline

Starting the journey as a trader

For those aiming to enter this universe, following a methodological structure is crucial.

Step 1: Personal profile assessment — Conduct suitability tests to measure your risk tolerance and market fluctuation resilience.

Step 2: Building knowledge — Use specialized courses, reference literature, and analysis materials to underpin your understanding of market functioning.

Step 3: Selecting the operational strategy — Choose between Day Trading, Swing Trading, Scalping, or Position Trading, considering which aligns best with your availability and temperament.

Step 4: Defining risk parameters — Set clear limits for maximum acceptable losses (stop loss) and profit targets (stop gain).

Step 5: Reliable platform — Select a platform that combines fast execution, operational stability, and advanced analytical tools.

Step 6: Continuous risk control — Never concentrate all capital in a single operation and systematically monitor your results and performance metrics.

Profitability mechanism: how the trader earns gains

The trader generates profits by identifying price movements before their completion and closing the operation at the previously calculated moment. In practice, the gain results from the difference between the entry and exit values of the asset, always considering operational costs and exposure management.

Consider the example of a trader monitoring shares of a listed corporation. After technical analysis of the charts, they identify a support zone where the price historically encounters buying resistance. Detecting signs of demand strength, they initiate a buy position at R$ 20.00. After a few hours, with the market moving upward, the price reaches R$ 21.00, a pre-established target level. At this point, they close the operation and realize the profit.

The same logic applies to sell operations. If the trader identifies a downward trend, they can sell the asset in advance and buy it back at a lower price, profiting from the devaluation.

In both scenarios, the critical element is not to win 100% of the operations but to control losses and ensure gains surpass losses, generating consistency over time.

Path to excellence: building a solid career as a trader

Achieving consistency in this activity goes beyond technical competence. The fundamental foundations include:

• Continuous learning and constant adaptation
• Strict discipline in executing operational plans
• Emotional regulation under uncertainty
• Scientific and structured risk management
• Constant monitoring of market dynamics

A successful trader understands that success is built gradually, through repeated practice and ongoing learning — not through promises of quick wealth.

To take the first steps in this career, the essential element is to have a reliable platform that provides robust analytical tools, fast order execution, and risk protection resources. Before trading with real resources, it is recommended to test a demo account (demo), assimilate the practical functioning of the market, and solidify your operational strategy. Choosing a regulated broker compatible with your profile is the first move to practice this activity safely and responsibly.

Three steps to start your operations

1. Registration — Complete your registration with the requested information

2. Funding — Make your first deposit (minimum of )USD(

3. Operational start — Begin your trading activities on the platform