Trading in Brazil: understand the meaning of trader and how to profit in the market

More and more Brazilians are seeking to go beyond savings accounts and enter the stock market. But do you really know what it means to be a trader and how this activity works in practice? The difference between simply investing and actively trading is much closer than many people imagine — and understanding it can completely change your relationship with money.

The true meaning of trader: more than just buying and selling

When we talk about trader meaning in the context of the financial market, we are describing a professional or individual who executes buy and sell operations of assets aiming to profit from price fluctuations over short periods. The word comes from the English “trade” (negotiation), but in Brazil, it has gained a very specific meaning in the finance universe.

Unlike a traditional investor who waits years for returns, the trader acts actively. They monitor charts, economic indicators, and make quick decisions when opportunities arise. Trading can be done on the Stock Exchange, in the forex market, in indices, and commodities — always focused on taking advantage of short-term and very short-term movements.

The essence? Buying at one price and selling at a higher value, or profiting from falling prices in short selling operations. Simple in concept, but demanding in execution.

Trader versus investor: two paths in the same market

Many people use these terms interchangeably, but they represent completely different strategies.

The trader seeks to capture movements lasting hours, days, or at most a few weeks. Their main tool is technical analysis — charts, patterns, and indicators. Timing is everything. A 2% price movement can generate significant profit or loss depending on the volume traded.

The investor, on the other hand, is patient. They analyze company fundamentals, growth potential, financial health. They hold positions for months or years, aiming to build wealth and receive dividends. Daily fluctuations do not concern them — they look at larger horizons.

In practice, many market participants do both: use trading to seize short-term opportunities while maintaining a more solid investment portfolio for the future.

The different profiles of those who act as traders

There is not just one type of trader. The market accommodates quite distinct profiles:

Institutional trader works within large banks, funds, and insurance companies. Has access to advanced tools, privileged information, and operates with huge volumes. It’s often a job with pressure and strict targets.

Execution trader (or operational broker) does not make strategic decisions — only executes client orders precisely. More of a facilitator than a strategist.

Sales trader combines negotiation with consulting. Besides executing, they offer analysis and ideas to clients, acting as an advisor.

Independent trader is someone who operates with their own resources, makes all decisions, and fully assumes the risks. They can be a beginner or experienced, but the responsibility is entirely theirs.

The operation styles that define how each trader acts

The duration of operations fundamentally distinguishes trading styles:

Day trader opens and closes everything on the same day. Nothing stays overnight. Operations last minutes or hours, requiring full concentration and the ability to make quick decisions in volatile environments.

Scalper trader takes this to the extreme. Operates in seconds to a few minutes, seeking small repeated gains throughout the day. Execution speed is critical. It’s almost impossible to scalp without automatic tools or high automation.

Swing trader extends the horizon to days or a few weeks. Tries to profit from larger movements by identifying trends. Less stressful than day trading but requires discipline to not abandon positions when the market moves against.

Position trader holds positions for weeks, months, or even years. Although operating in variable income, it is closer to medium-term strategies, combining technical analysis with macro context reading.

High Frequency Trader (HFT) is not for humans. Algorithms and robots execute hundreds of operations in fractions of a second, exploiting small market inefficiencies.

How to compare styles: what changes from one to another

Who can really be a trader?

Technically, anyone over 18 with a CPF can open an account at a brokerage and start. But that’s exactly the problem: easy access does not mean the ability to profit.

To succeed in trading, you need:

• Financial organization: know how much you can lose without affecting your life
• Knowledge: understand how the market works, not just click buttons
• Emotional control: resist panic when losing and greed when winning
• Discipline: follow your plan even when everything urges you to do differently
• Access to proper tools: a reliable, fast platform with good charts

Age doesn’t matter. Starting capital doesn’t either — it can be small. But mindset? That’s essential.

The 6 practical steps to start as a trader

1. Understand your risk profile

Take a suitability test with your broker. It helps identify if you truly have the temperament for trading or if investing is better.

2. Start studying seriously

We’re not talking about “watching videos on YouTube for 2 hours.” Study books, take structured courses, understand technical analysis, basic macroeconomics, and risk management.

3. Choose your operational style

Day trade, swing trade, scalping — each requires different skills. Don’t choose based on “which makes more money,” choose based on what fits your time and temperament.

4. Define your risk rules

Before trading with real money, set: how much you will risk per operation, where to cut losses (stop loss), where to take profits (stop gain). Without rules, it’s just gambling.

5. Use a reliable and fast platform

The broker makes a difference. You need execution speed, good analysis tools, stability, and regulatory support. A poor platform costs real money.

6. Start small and stay consistent

Test on a demo account first. When trading with real money, start small while learning. The initial goal isn’t to get rich in 3 months — it’s to learn with consistency.

How a trader makes money in practice

Profit comes from the difference between entry and exit prices, always minus operational costs (brokerage, exchange rate, spread).

Imagine this real scenario: you monitor a stock on the exchange. Identify a support level — a price where historically the value “bounces.” See buy signals on the chart and buy at R$ 20.00. A few hours later, with the market rising, the stock hits R$ 21.00 — your pre-defined target. You sell. Profit of R$ 1.00 per share (minus costs).

The same works in reverse: you identify a downtrend, sell “short” (sell first, buy back later at a lower price), and profit from the devaluation.

The key point isn’t to win every trade — nobody does. It’s to let gains be larger than losses, maintain consistency and discipline to follow your plan even when everything tempts you to do differently.

The pillars of a trader who really makes money

Success in trading isn’t magic. It’s building:

• Continuous education: the market changes, new techniques emerge, you must always learn
• Operational discipline: follow your plan even when emotion is stronger
• Emotional control: in trading, fear and greed are your biggest enemies
• Risk management: never put everything into one operation, always have a backup plan
• Constant monitoring: you can’t detach from market reality if you want to operate in it

A successful trader understands that results come with time, practice, and learning — never with promises of quick gains.

Taking the first steps: how to start safely

Before trading with real money, test everything on a demo account. Understand how the platform works, how to execute orders, how charts work. Stop fearing “wasting time” — it’s the time you save later.

Choose a regulated broker. That’s non-negotiable. Your money must be safe.

Define your strategy calmly. Day trade, swing trade, which market you will focus on. Have a plan before risking real money.

And remember: being a trader means being responsible for your own decisions. Don’t blame the market, don’t blame anyone. Learn, adjust, and try again.