In the current TradersTalk we spoke with Joachim Köngeter. He tells us how his views on the phenomenon of social trading on wikifolio.com have developed over time. Today, he is not only a convinced but also successful wikifolio trader. Happy reading!
Please tell us your name.
Under what user name can you be found on wikifolio.com?
My user name is “joibaer”. That does not sound very serious. I originally did not want to come across as a serious trader on wikifolio.com. My intention was to be able to compare myself with other traders. Thus, I did not assign my user name in a real mature manner. However, I was very quickly fascinated by the platform and the idea of social trading. I had “tasted blood” and my ambition had been stirred.
What is your profession?
I am a tax specialist. Since 2005, I am a full-time trader.
How did you discover trading?
At the end of the 80s, I bought my first stocks, however, I did so more as a longer-term investment. The longer I dealt with stock investment, the shorter my investment horizon became. I started to deal with charts, but for many years I did not know what I should focus on.
What does your typical trading day look like?
First, I take a look at the markets in Asia. I can still keep up with the US stock markets in the early evening. Almost every morning, I scan around 300 charts, paying particular attention to unusual volume, and of course price performance. Then I check out the development of fundamental data of the eligible stocks, which often also confirms the chart image. I also pay attention to insider dealings.
How many wikifolios do you currently manage? Are you already a “Real Money” trader?
I currently run 2 wikifolios – both of them as a Real Money Trader
What are your reasons for publishing your trading strategy as wikifolio?
A wikifolio is a great alternative to traditional stock funds offered by banks. There are no issuing premiums, the annual fees are below 1%. The performance fee is fair. It only becomes due when the wikifolio achieves profits. This way, both the trader and the investor get something out of it. A wikifolio can react much more quickly and flexibly to different market situations than the million-dollar stock funds of the large institutions. I think it’s great that a taxation of profits only takes place at the sell time of the wikifolio itself and not already when the trader sells the stocks in the portfolio. This way one can move one’s taxes over into an appropriate year. In addition, the investor can see all the actions of the traders in real time and also observe the performance of the wikifolio which is updated every 5 minutes. Additionally, the trader has the ability to provide the investors with useful information or to explain/justify the trader’s actions in the “Comments” section. On the downside, the wikifolio certificate does not have the status of “special assets” and might therefore be affected by a bankruptcy of the issuer.
How would you roughly outline your trading style (on wikifolio.com)?
First and foremost, I am a chart-oriented trader. In most cases, I select stocks that are in an uptrend and show a momentary weakness. I then try to detect when a stock comes out of this weak phase and continues with its upward trend. I try to use this point when the trend is resumed for a buy and take a part of the subsequent upwards trend along with me.
Are you satisfied with the development of your wikifolio?
Overall, I am satisfied. But I unfortunately was not able to escape the downward trend of the stock markets in February 2016. That was extremely annoying, because my wikifolios had hardly any significant setbacks until the end of January.
What was your trading highlight of the past 360 days?
I can't remember a real highlight because my stocks usually only stay in the portfolio for a relatively short time. A couple of times, I fared very well with Gft Technologie.
How do you assess the past stock exchange year 2015? What developments do you expect from the stock exchange year 2016?
2015 was quite volatile. But in this case, one could certainly benefit from slightly longer trends. The high volatility is likely to continue to accompany us in the future. The debt crisis with its countless hot spots makes me seriously worried.
Which markets are currently the most fun/make the most sense?
I only invest in the German stock market. I have enough to do with that.
Which stocks or securities do you currently favor in the medium term?
My immediate watchlist includes securities like: USU Software, Dr. Hönle, GFT, Mensch&Maschine, Helma, ADVA, Datagroup, SNP, Atoss, Grenkeleasing, All for one Steeb, Cancom, Nemetschek, Hypoport, SinnerSchrader, Mühlbauer ...
What was the hardest lesson you had to learn on the market?
The worst thing for me was the collapse of the internet bubble and the new market of 2000–2003. That made me humble as far as the market is concerned.
What advice would you give to a novice trader?
Strictly adhere to your loss limits. The control of losses decides about success or failure on the stock exchange. Stay away from leverage products. Beginners cannot foresee their emotions in poor market phases and their actions will thus not be dominated by rational thought, but by fear and panic. Even without leverage products, this will become painful enough.
What book can you recommend to other traders?
The book “Tools & Tactics for Master Traders” helped me a lot. Although it is already some years old and based on US stock exchanges. But it shows in a simple way how the stock market works in practice. It is incredibly motivating and has quite a few trading tips to offer.
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