Lukas Fröhlich (TheShortBear AKA The Fantastic Fundamentalist)
Primary Focus: Short-Bias on Small Cap Stocks based on Fundamental Analysis
Lukas’s first encounter with trading happened at a very young age.
Back in 2013, when he was 13 and just moved from France to Germany, completely changing his life, he searched for something meaningful to do with his time that could lead to financial freedom. He came across Forex, a market that in his eyes had unlimited potential. It was not long before he started trading and profited, getting amazing returns of multiple hundreds percent, but he had no foundation, as what he thought was his ability to trade was not more than pure luck. It took him 2 weeks to quadruple his account and two hours to blow it up completely.
One thing that Lukas did not accept was failure, he knew that some traders were making a lot of money trading and he knew he just had to stick with it. “Successful traders have one thing in common, they never gave up”.
Every single time he funded his account and blew up he learned a valuable lesson that forged him into the trader he is today. From risk management to strategy building every success was built upon his early failures.
He finally understood that he needed to build a strong approach to the market, which he found in small caps. He was fascinated with the range those were showing. Most were moving hundreds of percent up and moving back down to were they started in a short period of time. He started studying day and night, most of the time working and still studying 12-15 hours per day to get an edge over other market participants.
He started being a breakeven trader and fairly quickly started becoming profitable. He was now trading profitably implementing technical analysis, but it was not enough for him. He was not happy with only trading the market but also understanding it. What caused a move? Why would a stock be worth two to three times more on a specific day or spike to a specific price? He found his answers with fundamental and data analysis. He started reading the SEC filings, understanding the intricate, inner workings on companies, which gave him yet another edge in the markets. When asked about what he thinks is the most important aspect of a trading strategy his answer is always the same: “Data, data, data”.
Nowadays Lukas is a full time daytrader and trading mentor, trading with technical and fundamental analysis. He analyzes a company and grades it to get the most accurate picture of the asset he is trading and uses his data to give him the best chance to be on the winning side. Combining his skill sets, Lukas is able to achieve a winning rate of upwards of 80% on specific strategies. His playbook is constantly getting bigger as he continuously strives to be better trader and master every niche from small caps to big caps and IPOs.