Matthias Fernholz is new to trading, but he has already achieved outstanding results that caught our attention. We met with Matthias to discuss his best practices and how he managed to succeed in trading at such a rapid pace.
Can you tell us a little bit about how you got started in trading? What was your first step into the trading world?
Let’s start straight away. Last year in April, I started with a workshop from Marcus Schulz with the Volume Trader Academy. I did it pretty fast, even while working a full-time office job. After about three months, I started trading on demo accounts. It took me a while to fully understand the strategies, but once I got it, I took on my first challenge with The Trading Pit. I had to keep working at it. Eventually, I succeeded in my challenges, and on my first payout, things moved very quickly from there.
Wow, so you’re quite new to the trading world!
It was surprising for me. You have to realize, when I requested my first payout, I thought, "Okay, let's request it and see what happens." The team responded really fast, and when the money hit my bank account, I realized, "Yeah, it’s real. It’s actually working."
What made you decide to get into trading in the first place? Was it something you always wanted to do, or was there something specific that inspired you?
I’ve always been interested in trading. It’s exciting—understanding who moves the markets, what’s behind it. Are they some machines? Or some institutions? Who are they?
But at first, like many others, I failed and burned through some of my own money. I started the Volume Trader Academy after seeing an ad. I figured it was better to learn from the experts than to just keep trying and failing. Even after gaining some knowledge, it was still hard, because every situation is different. There are so many things you must think about. But it was my interest in the markets that got me started.
You've completed the academy and started trading—how would you describe your current trading style?
It depends on the market. I focus on the S&P 500 and NASDAQ. With NASDAQ, I’m into scalping. I think it's a very modern way to trade right now. There’s a lot of hype around it. What helps me a lot is that I make most of my profits in the S&P 500. That’s how I started to understand the correlation between the markets. So, when I see a strong correlation, I switch to trading NASDAQ with quick, impulsive moves like scalping. But usually I stick to S&P 500, where I trade in high-volume areas and focus on things like deviation and VWAP. I’ve learned that keeping it simple is the best approach—fewer indicators, better results.
You mentioned keeping it simple with indicators. Can you explain how that works for you?
Sure. For example, with VWAP, it doesn’t always work like the theory suggests. I keep it simple by using one or two indicators. My experience has shown that it’s more successful than using 10 different ones. Less is more in this case.
So you trade mostly in the US markets. How do you structure your day around your trading?
I usually start my trading day around 15:30 European time, which is when the US markets open. I spend the first 30 minutes analyzing the market—looking at volatility, whether it’s ranging, things like that. Because it all depends on the situation, and every day is different. Some days are super volatile, like when there's news, and other days are much calmer. I only start trading after 4 PM when I have a clear picture of the market situation.
What do you do until the US market opens? How do you prepare for your trading sessions?
I start my day with a workout and breakfast. I read a lot about stocks and crypto, but that’s separate from futures. My real trading day starts when the US market opens, and I analyze what’s in front of me. If there’s relevant news, I’ll check that too, but mostly it’s about understanding the market movements.
In certain situations, I already have the trades in my head, like "I’d enter here, my exit would be there, and my stop would be here," and then I see how it plays out. It gives me a sense of safety and confidence because I know that decision was correct. You understand the market and can see how it moves. That helps you make better trades, and your success rate should improve as a result.
Do you start trading futures when the market opens and stay until it closes, or do you just set up your trades and leave?
Of course, I’d like to make a lot of trades, especially with scalping since I trade multiple accounts. I prefer not to copy trades but handle them one by one, though this sometimes leads to overtrading. I’ve found it’s much better when I spot a really good opportunity, like in the S&P 500, and trade multiple accounts at once. Some days, I make just one trade and then close the software.
I’ve analyzed what happens when I make five, six, seven, or eight trades, and those days were usually bad. The best days are when I stick to my strategy—trade to the plan. Even if I make a loss, I call it a day. It’s not always about making bad decisions; sometimes it’s just about keeping things simple.
When you start analyzing the market, what kind of entry or exit points catch your attention? What makes you decide to act?
I really like stop runs. When I see a stop run, for example, and it reaches an area where there was a lot of volume the previous week—like a high-traffic area—I pay attention. If that area strongly rejects the short trend and the market can’t push further down, that’s when I like to enter. I also work with partial positions, so once the first take profit is hit, I adjust my stop loss. That way, I secure the profit and know I’ve done a good job. From there, I hope the market moves in my direction, and I can call it a good day.
Once you're in the trade, how do you manage your emotions, especially when things aren’t going well?
I think the key is realizing we’re all human, and our concentration is limited. When you're analyzing something and decide, "Alright, I’m going to make this decision," you make it for a reason. But negative emotions can get in the way, especially when you get stopped out quickly. You might think, "Okay, I’ll try again," but your mind isn’t clear, and you’ll most likely fail again. That’s happened to me too, both in challenges and in my earning account.
When I did some backtesting, I realized many of those mistakes were unnecessary. My win rate is over 70%, but you can still make a lot of errors in a short time. That’s when I decided to track everything in a trading diary—how many trades I made, how they went. For me, it’s always around two or three trades, and that’s it. I’ve also noticed that staying in a trade for too long is mentally stressful, and it doesn’t have to be that way. You need to be clear-minded for this.
That’s great discipline. You mentioned a trading diary—can you share more about that?
Yes, I used to keep a simple Excel sheet where I tracked my trades—how many I did, which days I traded. I noticed that Mondays to Thursdays worked better for me than Fridays, so I often avoid trading on Fridays now. I stopped keeping the diary, but I learned a lot from it in the early stages.
So how do you handle other challenges? What’s your motivation to keep going with trading, and how do you use those challenges to shape yourself as a trader?
I like to keep going because I’m very interested in investments overall, and I need the capital for that. I keep trading because I really enjoy it—it honestly gives me a lot of joy. But I also know I need to build capital for future investments. The markets are just fascinating to me; trading has become a kind of passion.
What did you do before? You mentioned that you used to work in a completely different field. What were you doing before trading?
My journey started very differently. First, I did an apprenticeship as a tool mechanic in the industry. After that, I moved into purchasing—technical purchasing, then strategic purchasing. My last job was as a product manager. Then I started trading. So yeah, I did a little bit of everything!
During the day, when you’re reading about crypto and other industries, do you do anything else to develop your skills as a trader? Do you take courses, use a mentor, or watch educational videos? Or do you rely more on your own analysis?
I’m part of the Volume Trader community, and I’ve made some friends there. One of them, I’m actually visiting in August for a barbecue—we met through the Discord community. We exchange a lot of trade experiences, and we also have a mentoring program. There are three live trading calls a week where you can participate. Even though I’m not always trading with them, I watch what they’re doing. It’s really interesting to see how other people approach the market. A lot of questions come up, and it helps a lot to see how others think, especially during times of corrections or big market movements.
The community aspect sounds really interesting. Do you feel like being part of a community is a small but essential part of the journey?
Absolutely. In trading, communities are so important because you share your interests, tips, successes, and even your losses. That’s how we learn from each other and inspire each other. With prop trading in particular. Sharing insights is really a key to growing as a trader.
Do you have any specific experience that shaped how you trade today?
First of all, I want to go back to the point about the trading community. I think a big issue for many traders is that they start completely alone. That was the case for me—I didn’t know anyone in my circle who was into trading. So, it’s really important to join a community because a lot of traders are like "lone wolves," trading on their own. Being part of a community can make a big difference.
As for a painful experience, mine started with the gold market and high leverage. You think you understand it after one or two successful days, just like a typical newcomer. You hear things like, "Trade with us, we’ll give you great opportunities." You start with a demo account, and after that, you switch to real money. The most painful experience for me was losing a lot of money that I had earned from my regular job. That was probably my biggest failure.
Does it still affect you today?
Yeah. Not anymore, though. I’m over it now, but at first, it caused a lot of fear. I remember thinking, "Wow, you lost that much money." My first thought was, "How long did I have to work to earn this?" And then it’s just gone—burned up with high leverage. It wasn’t like investing in a stock, where there’s a chance for recovery—it was just burned for liquidity for the big players. That was a huge lesson for me. But the positive side is, after burning that money, I realized I needed to invest in something better, like an academy or workshop. I don’t think I would have done that if I hadn’t lost that money first.
So, it all happened for a reason. It made you realize you needed to learn rather than just playing around with money and losing it quickly.
Exactly. I think the biggest problem is greed—this illusion that you’re going to get rich now. You think you’ll hit the big money, but in reality, you’re just getting lured into losing it all. It’s impossible to succeed without proper knowledge and a solid foundation.
Are you still trading gold these days, or have you moved away from it?
I traded gold a little after that, but I figured out that I don’t really like it. Maybe it’s a bit of PTSD! I really prefer the American markets, like the S&P and NASDAQ.
Sticking to the classics—it’s a solid choice.
It works for me!
You’ve had your challenges in trading, but what about successes? Do you have any specific moments that stand out?
Yes, there was one trade where I hit my monthly income target in just a few minutes. That was an eye-opener for me—seeing how I could make in minutes what would normally take me a month of work. It felt surreal, and I even double-checked my account to make sure it wasn’t a mistake. That was the moment I realized I could quit my day job and trade full-time.
You’ve clearly found consistency. What would you say to someone who’s just getting started in trading?
My tip would be to start as soon as possible but take it slow. Don’t rush into high risks or try to hit a lucky punch right away. Start with demo trades. A demo account is a stable way for everyone to practice without real risk. When you feel comfortable, you can start with something like prop trading. It’s better to pay for a challenge than to lose real money.
I completely agree with you on that. With prop trading you get the chance to trade with someone else’s money, but you also have built-in rules that teach you risk management and how to be a better trader.
Exactly. With a prop account, whether it’s a challenge or an earnings account, those limitations help keep you focused and in control. They guide you to stay within your strategy in a safer way. For example, I think this happens to everyone who starts trading—if they aren’t paying attention to news, they’ll eventually get caught trading around news events. You get a big slip, and you might get stopped out. That’s why the rules are important, like not trading within two or three minutes before or after big news events. I give myself about 10 minutes, just to be safe and see how the big players react to the news.
That’s smart.
Yeah, news events are unpredictable. Another good thing about prop firms is their scaling plans. As you progress, your account size grows. You might start small, say with two-lot positions, and as your capital increases—if you hit your targets and avoid drawdowns—you just keep doing what you did at the first level. The only difference is the larger position size, but your strategy remains the same. It’s easier to manage with these targets and drawdowns compared to trading your own account.
I love your tips, and your journey is so interesting.
You’re very disciplined, and that’s impressive, especially since you’re still so fresh in this industry. I think a lot of people listening to this will be inspired by your story.
Thank you for sharing it with us!
Thank you so much! I appreciate it, and I’m looking forward to what’s ahead.
Watch the full episode here
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