So I want to talk about major trading techniques. And there are a couple of and there are more than than these five, there are more specifications and traders say no, I'm making these notice and giving their own names to their trading style, but that are the five of for better, better for Mayer trading techniques. So the first one is the day trader, the classically day trader buy and sell positions over a couple of days or every day. So the day trader is sitting the whole time on in front of his computer and looking for opportunities to buy or sell stocks. So long position or short position and making this on a day basis. So which easily means they're holding positions for a couple of days to holding positions over a couple of days mean that they are active traders and doing actively trading.
The next one is the shorter form of the day traders the minute trader, which which are holding positions for minutes or hours. So just the shorter the day trader, and the hardest one, the hardest trader is the scalping trader. So what does a scalping trader do? A scalping trader, scalping is positions. That means the scalping traders holding positions for seconds, four seconds or maybe minutes. So it's very, very short time.
And that's quite interesting because there are also scars Hoping to return but also their risk, because we will see this in the next modules and and videos, how the stock market works. And if you look, you will always on a second minute basis, you will see that we have little, little points they go like this or downside and those are the normally charge moves up just a little bit in the seconds in a minute chart, but they are sometimes this immense of hits and the chart and the scalping trader using this for making little return so two to 5% or two 3% as a return but on a second basis and that's a lot of time a day. So like 20 or 30 trades a day. And scalping trader is this one who is the active trader and sitting the whole time On on the computer and need to make the chart analyzes, because you won't, will be successful or won't be successful scalping trader if you using the fundamental analysis, because fundamental analysis is on a long time basis and for scalping, you need to chop analyzes.
And look the whole day for news. Yes, and this is what a scalping trader do. The opposite is the long time investment. And there are more on a fundamental basis. So the first one is the swing trader, swing trader buys, buy in a swing. Maybe you hear of that, buy the dip, buy the dip is one point for this.
So there are a couple of stocks they make this so they have those charts. formations there. volatiles. There are political issues and many points and let's say, this is the chart form for five years, five years chart. And as a swing trader, you will find a lot of a lot of points where you can invest in the stock that you want. So let's say you could invest your first time here, and you go up there, okay?
And you're always securing your positions and would sell this at this point. So you have your return by let's say 20%. And then you wait and wait for the next point where you can buy again and go in and the same thing, so you have to next point and sell your stuff. So there are swing traders, they making the technique like they going in along position and after the loan position ends, and child falls, they also open a new short position. So you are invested a long time, but not with this high risk. And, and you're always invested but not with a high risk from from option or certificate.
So it was normally shares. And the interesting thing is that you can investing in several points and maximizing your return. And the last one, it's the one the most No, that's the buy and hold strategy. So just buy stocks, buy papers on the stock market, and leave them in your account. That's the buy and hold strategy. And the buy and hold strategy is also destroy energy from Warren Buffett.
So if you want to be successful with what Hold your normal need you normally need very good fundamental analysis to be sure that the stock which what you want to buy, so, the company is a good company and are a good good development in the company to market is this good for them and there are many checks whom we will also do this in the fundamental analysis class. So, the buy and hold strategy is the easiest, and on the other hand difficult is one because you have too long time but you need to make an deep analyzes in front of of your, of your target and then you buy them and just leave them into in your account. So you always have the dividends and the stock growth in it. So, yeah, that's for the trading techniques. Just for you to have an overview about trading techniques.
There are normally What what traders normally do and just for me I was earlier earlier in my earlier years was a day trader and just trading every day. I also tried a scalping trader but for me it's too fast. So I'm normally done the day trader stuff so buy and sell every day. But yeah, the time with your own company and with other stuff to do, I don't simply don't have the time for the day trading. And now making combination of swing and buy and hold, because I have more than one account. I got actually five accounts for my stocks and two of them are, what the buy and hold strategy.
They are just simply when I gets when I don't want to work, if I have also it's just for a really long time. 30% 40 plus years to be secured if I get older and what I normally do daily is the swing trading. So, I am always analyzing the market look for news look for stocks they are on my watch list and look for good points to buy or sell. So, we will we will see a lot of company shares in the next videos and I will tell you which one or which strategy would be perfect for them. There are some companies that really perfect to swing trade them because they're good companies but not that huge. Like like Microsoft or So Microsoft is not good for swing trading because Microsoft was always a little bit up and just a little bit down so that's not good for swing trading.
But on the other hand, the German stock paper wire cut is perfectly for swing trading. Because you can easily make 30 to 40% in three months, and then you can sell and easy could go short for 10 20% and buy the next tip and go into the shares again. Yeah, that's for the trading techniques and we will now start with the next lecture.