Trading: definition, how it works, and how to take your first steps in the market

The search for quick operations in the financial market is growing exponentially among Brazilians. In this dynamic context, the figure of the trader — professional or individual who seeks to profit from short-term price fluctuations — emerges. But after all, what is the true meaning of trading, and how can someone start this journey? This guide covers everything from fundamental concepts to practical strategies you need to master to operate with greater safety and knowledge.

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Understanding the meaning and concept of trading

Trading meaning goes far beyond a simple negotiation. The term, originating from the English “trade” (to negotiate), refers to a set of short or very short-term operations carried out in markets such as Stock Exchange, foreign exchange, indices, and commodities. Unlike long-term investors, those who practice trading seek to take advantage of price variations that occur in minutes, hours, days, or a few weeks.

Integrated into the world of variable income, trading depends exclusively on market fluctuations. Operations happen online, through trading platforms that ensure agility, full control, and instant order execution — essential elements for those operating in this segment.

Who is the trader and what do they do in practice?

A trader is a professional or investor who operates by buying and selling assets with a focus on short-term returns. Unlike those who invest with a distant future in mind, traders constantly monitor the market, analyze charts, study economic scenarios, and make quick decisions as soon as opportunities are identified.

In practice, a trader does not operate based on intuition but on rigorous analysis. They observe economic, political, and corporate factors, identify emerging trends, and act precisely when favorable moments arise. Their operations can last a few minutes or extend over days, always with the main goal: buy at a lower price and sell at a higher value, or take advantage of price drops in structured selling operations.

Success in this practice fundamentally depends on discipline, clear goal setting, strict risk control, and above all, emotional control in the face of market uncertainties.

Trader versus investor: understanding the practical differences

Although both participate in the same financial ecosystem, trader and investor follow completely different logics.

The trader focuses on taking advantage of short-term fluctuations, exploring asset volatility through quick and precise operations. Their strategy is mainly based on technical analysis, perfect timing of entry and exit, and strict risk management — after all, small variations can significantly impact the final result.

The investor, on the other hand, adopts a medium and long-term perspective. Their priority is based on solid economic fundamentals, company quality, and creating patrimonial value over time. Instead of reacting to daily market fluctuations, they hold positions for months or years, seeking consistent returns with lower operational turnover.

From a behavioral point of view, trading attracts people with high risk tolerance and availability to monitor markets daily. The traditional investment approach is more suitable for those who prefer less intense strategies, focusing on structured financial planning.

In reality, many market participants combine both approaches — using trading for profitable point operations and investing for long-term patrimonial building goals.

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Main categories of traders in the market

Contrary to what many believe, traders are not all the same. There are different profiles and roles within the financial universe:

Institutional trader — Operates within large institutions such as banks, investment funds, and insurance companies. Handles significant capital volumes following strategies previously established by the organization, using sophisticated tools and exclusive market information.

Executor or broker trader — This professional is responsible for executing buy and sell orders as requested by clients. They do not determine the strategy but ensure that each operation is carried out with maximum precision and efficiency.

Sales trader — Combines operation execution with strategic commercial relationships. Besides conducting negotiations, they offer analysis, ideas, and consultative support to clients, acting as partners in decision-making.

Independent trader — Operates using their own resources and maintains complete independence in decisions. They can be beginners or experienced, but carry full risks and responsibilities for the operations performed.

Different operational approaches in trading

Besides trader categories, there are different operational methodologies mainly defined by the trading horizon:

Day trader

The day trader opens and closes all positions within a single trading session, exploiting rapid market movements. Operations range from minutes to a few hours, requiring intense concentration and immediate reaction.

Scalper trader

Operates in ultra-short timeframes, seeking to capture small gains repeatedly throughout the session. Speed of execution and risk control are absolutely essential in this methodology.

Swing trader

Keeps positions open from one day to several weeks, capturing broader movements through refined technical analysis and reading market trends.

Position trader

Holds positions for weeks, months, or even extended periods. Although operating in variable income, their approach closely resembles medium-term strategies.

High Frequency Trader (HFT)

Performs operations in seconds or fractions of a second, often using automated algorithms and trading robots to execute strategies with speed impossible for humans.

Practical comparison of the main styles

Who has potential to become a trader?

Technically, anyone can start trading, regardless of age or initial capital. However, this activity involves high risk and is more suitable for aggressive investors who understand the volatile nature of variable income.

Certain attributes significantly increase the chances of success:

• Clear and disciplined financial organization
• Solid knowledge of the mechanics of the financial market
• Ability to control emotions under pressure
• Access to reliable trading platforms and advanced tools
• Consistent discipline and rigor in execution

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

Step 1: Identify your investor profile

Perform a suitability test to understand your real risk and volatility tolerance.

Step 2: Study the financial market

Courses, specialized books, and technical content build a solid and fundamental base for future operations.

Step 3: Choose your operational methodology

Select between Day Trade, Swing Trade, Scalping, or Position Trade — each strategy requires different skills.

Step 4: Set goals and risk limits

Clearly define your stop loss (loss limit) and take profit (profit limit) before starting any operation.

Step 5: Use a regulated and reliable platform

Speed of execution, technical stability, and sophisticated analysis tools are indispensable for the professional trader.

Step 6: Implement strict risk management

Never concentrate total capital in a single operation and constantly monitor your results to adjust strategies.

How does the trader make a profit?

The trader profits by identifying price movements before they conclude and closing operations at the planned moment. Practically, gains result from the difference between entry and exit prices, always considering operational costs and risk strategy.

Consider this practical scenario: a trader monitors a company’s shares listed on the Stock Exchange. After refined technical analysis, they identify a support zone where the price historically reacts positively. Observing signs of strong buying pressure, they enter the operation by purchasing the stock at R$ 20.00. A few hours later, with the market favorable, the price reaches R$ 21.00 — a level previously set as the target. At this point, they close the operation and realize the profit.

The same principle applies to sell operations: when identifying a downward trend, the trader sells the asset first and buys back cheaper later, profiting from the devaluation. In both situations, the critical point is not to win all operations but to strictly control losses and keep gains larger than losses, ensuring consistent profitability over time.

Becoming a consistent and profitable trader

Success in trading goes beyond pure technique. The fundamental pillars include:

• Continuous and updated financial education
• Strict discipline in operational execution
• Emotional management under adverse situations
• Sophisticated risk control in all operations
• Constant market monitoring

A truly successful trader understands that results come with time, deliberate practice, and continuous learning — never through promises of immediate or easy gains.

If you want to start your journey, the essential is to have a reliable platform offering advanced analysis tools, quick order execution, and sophisticated risk management resources. Before trading with real capital, test the demo account, deeply understand how the market works, and define your strategy without rush.

Choosing a regulated broker suitable for your profile is the foundation for safe trading in the trading universe.

Three steps to start your experience

1. Register — Fill in your complete information
2. Deposit funds — Minimum deposit of 5USD
3. Start trading — [Start](