Trader: the professional who lives off market fluctuations — a practical guide for beginners

In recent years, the number of Brazilians seeking gains through the capital markets has grown exponentially. At the center of this reality is the figure of the trader, a professional who buys and sells assets in the short term to capitalize on price fluctuations. But behind this seemingly simple profession lies a complex universe of strategies, risks, and discipline. This guide uncovers the mysteries of trading, exploring who truly manages to profit, what styles exist, and how to take the first steps without losing security.

The types of traders who move the market

First of all, it’s important to understand that not all traders operate the same way. There are distinct profiles in the financial market:

Institutional trader works in banks, funds, and insurance companies, handling massive volumes of capital with access to privileged information and sophisticated tools. Executor trader (or broker) simply executes client orders without deciding strategies. Sales trader combines execution with consulting, providing analysis to clients. Independent trader operates with their own capital, with full independence and responsibility for results.

Choosing which profile to follow depends on availability, capital, and experience. Many beginners start as independents, trading small amounts while learning the market dynamics.

Trading in practice: how does it really work?

The definition is simple: trading refers to short-term negotiations carried out on the Stock Exchange, forex market, indices, or commodities. The main goal is to take advantage of price variations that can occur in minutes, hours, or days.

Unlike fixed income or traditional investments, trading is part of variable income — its results fluctuate according to market behavior. Everything happens online, on trading platforms that allow speed and full control over executed orders.

In practice, a trader constantly monitors economic factors, corporate news, and technical indicators. They identify trends, wait for buy or sell signals, and act quickly when opportunities arise. The operation can last from a few minutes to several weeks — everything depends on the chosen strategy.

Profit comes from the difference between the entry and exit price. If the trader buys a stock at R$ 20 and sells at R$ 21, their gain is R$ 1 per share (minus operational costs). The same applies to short selling operations: the trader can sell first (short) and buy back cheaper, profiting from the decline.

Trader versus investor: two radically different approaches

Although both operate in the financial market, trader and investor follow opposite philosophies.

The trader seeks short-term movements, exploiting volatility. Their analysis is predominantly technical — studying charts, indicators, price patterns, and entry/exit timing. The focus is on reacting quickly to daily oscillations. High risk, high emotional demand, and the need for constant monitoring are characteristics of the trader.

The investor adopts a medium to long-term horizon. They analyze economic fundamentals, company solidity, and growth potential. Instead of reacting to daily fluctuations, they hold positions for months or years, seeking consistent returns with less operational dynamics. Greater patience, lower frequency of operations, and focus on wealth building.

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

The main trading styles

Within the universe of trading, there are different approaches defined by the time horizon:

Day trader opens and closes positions on the same day, capturing quick movements that last minutes or hours. Requires extreme concentration and high emotional control.

Scalper trader works on ultra-fast timeframes (seconds to a few minutes), seeking small repeated gains. It is the most demanding in terms of speed and reaction. Operational costs are significant due to the high volume of trades.

Swing trader operates over days to weeks, capturing broader movements. Less psychological pressure than day trading, but requires patience to wait for movements to complete.

Position trader maintains positions for weeks, months, or even years. Although operating in variable income, their approach is closer to traditional investing.

High Frequency Trader (HFT) executes operations in fractions of a second, fully automated by algorithms and robots. This is only a reality for institutional operators with advanced technology.

Practical comparison of trading styles:

Who is capable of becoming a trader?

Technically, anyone can start. But in practice? Not everyone has the right profile.

Trading requires significant risk tolerance, as variable income constantly fluctuates. It also requires availability — you cannot ignore the market if you choose day trading. And it demands psychological stability to handle losses without losing emotional control.

Factors that increase chances of success:

• Personal financial organization
• Solid knowledge of the financial market
• Refined emotional control
• Unwavering discipline
• Access to a reliable trading platform
• Initial capital that you can lose without compromising your personal life

There is no legal minimum age, but minors need a representative. There is no absolute minimum capital — some platforms allow starting with small amounts — but it is recommended to have a financial cushion to cover initial losses.

Practical path to start as a trader

If you’ve decided to try, follow this structure:

Step 1: Identify your risk profile Conduct a suitability test. It measures your real risk tolerance and guides which style is more appropriate.

Step 2: Build solid knowledge Study through courses, specialized books, and quality content. Understand technical analysis, risk management, and market psychology. Don’t skip this phase.

Step 3: Choose your operational style Day trade, swing trade, scalping — each demands different skills. Start with what makes the most sense for your routine.

Step 4: Set goals and risk limits Establish stop loss (loss limit per operation) and take profit (profit limit per operation). Without these definitions, emotions take over.

Step 5: Choose a reliable platform Speed of execution, technical stability, and analysis tools are non-negotiable criteria. Test the demo account extensively.

Step 6: Implement strict risk management Never concentrate all capital in one operation. Monitor metrics constantly. Progression comes through consistency, not isolated wins.

How does the trader really make money?

Profit comes from a single source: price difference. But this seems deceptively simple.

A trader doesn’t need to win all trades. They need to win more than they lose, and — more importantly — their gains must be larger than their losses. If you have 10 trades: 6 wins of R$ 100 and 4 losses of R$ 75, your result is positive (+R$ 300).

Practical scenario: you follow a company’s stocks. After analyzing charts, you identify a support zone where the price often finds buyers. Noticing signs of strength (growing volume, pattern formation), you buy 100 shares at R$ 20. Hours later, the market rises and the price hits R$ 21 — your predefined target. You sell, realizing R$ 100 profit (minus brokerage costs). That’s the essence of trading.

Secrets of successful traders

Consistency in trading doesn’t come from luck. It comes from:

Continuous education — The market changes. The successful trader studies constantly, adapts strategies, and evolves.

Operational discipline — Follows the plan. Doesn’t alter stop loss out of emotion. Doesn’t double down after a loss. Doesn’t ignore entry signals just because “they feel” it will improve.

Emotional intelligence — Fear makes you exit early. Greed makes you stay too long. The skilled trader identifies their emotional triggers and controls them.

Impeccable risk management — Never operate with capital you cannot lose. Diversify instruments. Respect risk/reward ratios.

Methodical monitoring — Review trades, record lessons, identify patterns in mistakes.

Successful traders understand that results come with time, repetition, and continuous learning — never with promises of quick gains or magic formulas.

First steps to start

If you’re determined to enter this world:

1. Register on a regulated platform — Safety first
2. Fill in information and make a minimum deposit — Small initial amounts are acceptable
3. Start with a demo account — Practice without real money while learning
4. Define your strategy — Choose style, schedules, and instruments
5. Start small — Minimize trade sizes while gaining experience

Trading requires more than technique — it demands mindset, discipline, and acceptance that losses are part of the journey. Choosing a regulated broker aligned with your profile is the first safe step to operate in the trading universe responsibly.