02/04/2024 – 9:00
Day trading has become an increasingly popular investment modality in Brazil. One-day operations are a way out for those who want to live off income.
The most common operations are carried out through the purchase and sale of B3 future index mini-contracts or dollar mini-contracts, but it is also possible to operate shares, currencies, interest rates and even commodities in day trade.
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Antonio Marcos Samad Júnior, CEO of TC Star Desk, a platform that assists investors in these operations, gives some examples of how it is possible to make money with day trading.
“The trader makes money when he buys a certain asset and sells it at a higher price within the same day. But, not necessarily in that order, since it is possible to make money with falling prices. In this case, he sells that asset and buys it back on the same day at a lower price,” he explained.
Most lose money
The year 2023 saw a drop in the number of investors. According to B3, at the end of December there were 5.74 million CPFs compared to 5.85 million in December 2022.
Among individual traders, more than 90% lose money, according to a study by Fundação Getúlio Vargas (FGV). Companies that invest in this modality, according to the same research, earn more money than they lose. According to Samad, this happens because companies work with market professionals as responsible for these operations.
“Operations carried out by companies generate good returns because it is not the companies themselves that carry out the operations, but very well-prepared professionals who are hired. In other words, they are individuals who act on behalf of a CNPJ”, he explains.
Kitesurfer wants to travel around the country with money from day trade
However, it is possible to make money and make day trading your main source of personal income. That's what happened to Douglas Alves de Araújo, who gained the freedom of not needing to clock in every day and dedicate himself to kitesurfing. After starting with R$1,000 in investment, and losing and winning on operations, he managed to leave his job as an app driver to live solely off the income from day trading.
“As soon as I gained consistency in operations, I left my job as an app driver. I’ve been working solely as a trader for a few months now and I intend to stay that way,” he says.
This new occupation gave him time to invest in kitesurfing, a sport he has been practicing for 12 years, and dream of a 1,500 km trip between Rio Grande do Norte and Maranhão. “I want to put together a team. About three people at sea, plus a small support group on land and people to record the adventure,” he says.
Expert gives tips on how to have consistency in operations
The question that remains is: how to achieve consistency in day trading and, in this way, start making profits? In the financial market for more than 20 years, Samad presents 5 tips for those who want to make money operating in the market daily.
To be a trader you don't need to go to college or have a good level of education. But interested parties need to understand how the financial market works. There are free and paid courses available on the Internet. Proprietary desks, such as TC Star Desk, offer knowledge on their platforms.
The trader will not be successful if he cannot control himself. He cannot despair when he loses nor get too excited when he wins. In day trading there is no 100% assertive strategy. Anyone who still has doubts about this can try a different strategy every day. But be aware that none of them will always guarantee a profit. What the trader should always look for is consistency in operations, which means achieving between 70% and 90% success, on average.
The trader needs to act daily to make a profit, as he makes money by exploiting market liquidity. Therefore, he must be aware of the risks and manage them. This means creating parameters based on reality itself: at what point is stopping trading and leaving it until the next day the best decision? How many mini-contracts and with what values is it safest to risk? By setting operating parameters, the trader avoids his own failure. It is difficult for a professional to remain if the fall is from a very high level. It is easier to recover a 5% or 10% loss than a 90% or 100% loss.
- Plurality of strategies
Each trader has their own strategy to make a profit and in the financial market, one day is never the same as the next. Therefore, it is important to be knowledgeable about more than one strategy. There are several available such as scalping, reverse, momentum and white flag. Nothing prevents everyone from developing their own and even using robots, as long as they are configured according to the professional's interests.
- Start with a proprietary table
In the financial market, experience counts a lot. Why risk your own capital if there are ways to enter the market with zero risk? Today, with the popularization of proprietary tables, there is no reason to lose money. When entering a proprietary table, the trader will operate with the company's money, which limits the risks. The gain is divided between the professional and the board, but the loss is only for the company. It works as if it were an internship. The trader puts everything he has learned into practice, calibrates his emotional control, tests strategies and learns to manage risks by observing how the platform works.
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