Getting Started in Trading: A Practical Guide for Those Who Want to Operate in the Financial Market

Why Are So Many Brazilians Exploring the Short-Term Trading Market?

The Brazilian financial market has been attracting more and more people interested in active trading — and it’s no coincidence. Many seek to supplement their income or explore opportunities created by volatility. Whether professionally or as a hobby, those who operate this way need to understand exactly what they are doing. In this material, we will unveil fundamental concepts, show who truly profits this way, and, most importantly, how to start with a solid footing.

Understanding the Basics: What Is Short-Term Trading?

When we talk about trading, we refer to transactions that happen over short periods — minutes, hours, days, or weeks. It is not traditional long-term investing. It is pure variable income: your results depend directly on how the market fluctuates.

The operation occurs online, via trading platforms that allow you to buy and sell assets quickly. It can be stocks from the Stock Exchange, forex, indices, or commodities — the mechanics are the same.

Trader: The Market Varies’ Professional

Those who work with active operations are known as traders. Essentially, they buy an asset expecting to sell it at a higher price shortly after — or sell expecting to buy back cheaper. The goal is clear: profit from oscillations.

A trader spends the day observing charts, analyzing indicators, monitoring economic news, and making quick decisions. They are not investors waiting for dividends in 10 years. They are focused on the now, on immediate opportunities that the market creates every day.

Trader vs. Investor: Two Completely Different Mindsets

Here’s a truth: even operating in the same financial market, traders and investors follow entirely different paths.

The trader seeks quick movements, taking advantage of each oscillation to generate profit. Their main tool is technical analysis — reading charts, indicators, perfect timing for entry and exit. The risk is high, but so is the speed of return. They can lose money quickly or gain fast. It requires daily monitoring and strict control.

The investor thinks in months or years. They choose quality assets, analyze company fundamentals, and wait for patrimonial growth. Daily fluctuations do not affect them — they already knew there would be volatility. Their focus is to build wealth consistently, not react to every market move.

Many people end up combining both approaches: using trading for short-term gains and investing for long-term objectives.

The Different Types of Traders Operating in the Market

Not all traders are the same. There are various operational profiles in the financial market.

Institutional trader: works in banks, investment funds, insurance companies. Operates huge volumes of capital following the institution’s strategies, with access to advanced tools and privileged market information.

Order executor (broker): executes buy and sell orders for clients. Does not decide the strategy — only ensures precision and efficiency in execution.

Sales trader: mixes negotiation with commercial relationship. Besides executing, offers analysis and strategic ideas to clients.

Independent trader: operates with their own money, makes decisions alone. They can be beginners or experienced, but carry 100% of the risk and results.

The Main Styles of Operation: Each with Its Own Time and Pace

The duration of the operation defines everything. Each style has completely different characteristics, risks, and requirements.

Day trading: the fast pace of the same day

Opens and closes everything on the same day. Minutes or hours of operation. Requires high concentration because the market moves quickly and profit margins per trade are small. It’s necessary to do volume.

Scalping: the small gains hunter

Operates in seconds or a few minutes. Wants to catch small movements and accumulate gains. Speed is everything here. Many automate this with robots. The stress is high because everything happens very fast.

Swing trading: capturing larger waves

Operates from one day up to several weeks. Instead of reacting to every minimal variation, it seeks broader movements. Uses technical analysis but also reads market context. Less stressful than day trading, but still requires constant attention.

Position trading: the longer approach

Holds positions for weeks, months, or even years. Although in variable income, it is the approach closest to traditional investing. Fewer operations, but each well studied.

High Frequency Trading: when the machine takes over

Operations in fractions of a second. Uses algorithms and trading robots. For professionals with advanced technology.

Direct Comparison: Day Trading, Swing Trading, and Scalping

Aspect Day Trading Swing Trading Scalping
Operation Time Minutes to hours Days to weeks Seconds to minutes
Number of trades per day Medium/high volume Few trades Very high volume
Risk level High Medium Very high
Emotional pressure Intense Moderate Extreme
Time commitment Full-time Few hours per day Full-time
How to analyze Charts and indicators Technical + context Pure and quick execution
Common markets Stocks, indices, futures Stocks, ETFs, forex Indices, forex, futures
Main advantage No overnight risk Less psychological pressure Gains can be frequent
Main challenge Consistent emotional control Patience and discipline Precision in milliseconds

Who Can Become a Trader?

Technically, anyone can. There are no restrictions on age or initial capital to start — many platforms accept a minimum deposit of $5.

But practically? Trading is not for those wanting to get rich quickly. It’s for those who:

  • Have real financial organization
  • Understand how the market works
  • Can stay calm under pressure
  • Know how to define risks and maintain discipline
  • Have access to reliable platforms
  • Are willing to learn constantly

The more of these factors you meet, the higher your chances of success.

The Practical Path: How to Really Start Trading

Step 1 — Know Your Risk Profile

Take a suitability test (suitability) at a regulated broker. Can you tolerate losing 10% of your capital? 50%? That sets everything.

Step 2 — Learn Before Risking Real Money

Courses, books, specialized content. The more you understand about technical analysis, economics, and risk management, the better. Don’t skip this step.

Step 3 — Choose Your Operating Style

Do you want to trade every day during market hours? Do you want to catch bigger moves with swing? Do you have 1 second to react or 1 hour? Your routine and temperament define this.

Step 4 — Set Clear Limits

How much do you lose on a bad trade before exiting? (stop loss). How much do you aim to gain to close? (stop gain). These rules must exist before opening any position.

Step 5 — Test on a Demo Account

Every reliable platform offers a demo account. Use it to understand the interface, make fictitious trades, test your strategy without risk.

Step 6 — Start Small with Real Money

When moving to real money, start modestly. Don’t put your entire account into one trade. Spread the risk.

How Does a Trader Really Make Money?

The answer is simple: buy low and sell high. Or sell high and buy back lower later.

A practical example: you analyze a stock and identify a zone where it historically “bounces and reverses” (support). You see buy signals. Enter buying at R$ 20. Hours later, the market rises, the price reaches R$ 21 — your predefined target. Sell. Profit: R$ 1 per share.

The same logic applies to selling. You identify a downtrend, sell first, buy back cheaper, and profit from the difference.

The critical point: you don’t need to get all operations right. You just need to win more on the right ones than you lose on the wrong ones. A trader who wins 40% of the time but controls losses well is more profitable than one who wins 60% but lets losses grow huge.

The Pillars of a Consistent Trader

It’s not just technical skills that separate winners from losers. It’s:

  • Continuous education: the market changes, indicators evolve, you need to keep learning
  • Operational discipline: follow your strategy even when tempted to improvise
  • Emotional control: fear and greed are traders’ enemies
  • Risk management: never risk your entire account on one trade
  • Constant monitoring: active trading requires you to be present

A successful trader knows profits come with time, practice, and learning — not with magical promises of quick gains.

Your First Step: Choose a Reliable Platform

Before anything else, you need a regulated broker that offers:

  • Technical analysis tools
  • Fast order execution
  • Risk management resources
  • Intuitive interface
  • Customer support

Test the demo account first. Understand how it works. Define your strategy without rush. Then, when confident, put your money in and start small.

The right broker is the foundation for safe trading. Choose well from the start.

Ready to start? Register, explore the demo, and take your first steps in the financial market.

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