Trading From a Young Age: The Success Story of Nico Lieberknecht

Nico Lieberknecht got into trading at a very young age—15 years old—and is living proof that determination and the desire to learn are more important than age or education. Learn about his strategies and favourite moves that have led to payouts with The Trading Pit.

Could you tell us a little bit about yourself and how you got started with trading?

Basically my trading journey started when I was 15 years old. I got into trading because my older brother was involved in a network marketing company that taught people basic trading. That was my first exposure to the markets, and I immediately fell in love with the concept of trading.

I started with the basics, learning about structures like support and resistance, and trendlines. But I quickly realised that I couldn’t be successful with just that. So, I got trading coaches, did everything I could to get better—read a lot of books—and now I’m happy to say that I can trade.

What makes a 15-year-old look at a graph full of candlesticks and numbers and think, “Yes, this is interesting”? Were you always good at maths, or was there something else?

No, I wasn’t good at maths. I think you have to be a little bit crazy, honestly. In the beginning, it’s not that interesting because you’re just watching candlesticks move, and it’s overwhelming. But it was something new to me, something that I knew could take me far if I could understand the markets. That’s what initially caught my interest.

You mentioned that you started using indicators, but now you don’t use them at all. Why did you move away from that?

I really went through everything—basic structures, triangle formations, indicators like RSI, all of it. When I was 16, I got into volume trading. That’s when I started to understand the deeper aspects of markets, like liquidity and volume. Eventually, I realised you don’t need indicators to trade successfully. Now, I don’t use them at all. I just draw on the charts to visualise things, but I don’t rely on indicators like RSI anymore.

How would you describe your current trading style?

It’s mostly based on liquidity hunting, mixed with market structures like big momentums and breaks. I look for liquidity hunts—things like trendlines, equal highs, and equal lows—because when those get hunted, it often leads to big movements.

My trading style is a little bit complicated because it comes from years of market experience. But simply put, it’s focused on liquidity hunting.

Let’s simplify that a bit for our listeners. How do you determine your entry and exit points for a trade? What do you look for?

First, I look for big movements—big green or red candles—because they indicate where the big market players are active. Then, I look for breaks in the market structure, like if the price breaks the last high after an up-down-up movement with strong momentum. These areas often create imbalances in the market that need to be filled later, which provides an opportunity for another move. Before entering, I always check for liquidity pools—like trendlines or equal highs and lows being cleared—because that’s a strong signal that big players are entering the market.

It sounds like you spend a lot of time watching the charts without relying on indicators. Does that add more pressure? How do you manage the emotional side of trading?

Yes, it does add pressure. I still deal with emotions in trading, even though I’ve been doing it for a while. I’ve learned to control it better over time. You start to know your system, your trading style, and your own emotional triggers.

I do get emotional sometimes, especially when trades don’t go as expected. But with experience, I’ve learned what not to do, like not accelerating trades too much, which helps me avoid unnecessary stop losses. The emotional side is a journey. You learn from bad times, and over time, you start to understand how to handle it better.

Have you ever started a trade without emotion and then found yourself emotionally caught up in it, which led to a bad decision?

Yes, that’s happened a lot, especially in the past when I traded CFDs. You start a trade calmly, but then you see spreads widen or the market moves unexpectedly, and it can make you go crazy. Futures trading helped with that, but it still happens.

One thing I’ve learned is to never move your stop-loss because you’re emotionally involved. That’s a mistake everyone makes at some point. You place a stop-loss for a reason, and you should leave it there. It’s better to take a loss than to widen the stop-loss and make a bigger mistake.

What’s your daily trading routine like? Do you dive into trading right after you wake up, or do you have a different approach?

I wake up, check the news on investing.com to see if there are any major announcements that could affect the market. If there are big news events, I don’t trade—it’s too risky. Then, I analyse my three main markets: oil, the S&P 500, and gold. If there’s something interesting going on, I stay and watch the charts. If not, I leave the computer and come back in an hour or two. Sometimes there’s nothing happening, so I step away.

What do you do during those times when the market isn’t showing anything interesting? Do you use that time for skill development, or do you focus on other things?

I do sports or yoga to stay active. Sitting all day isn’t healthy, so yoga helps me balance things out. It keeps me calm and focused. I used to meditate a lot, but now I focus more on movement with yoga.

That’s interesting. Many traders I’ve spoken with do things like CrossFit or boxing. You’re the first one to mention yoga. Does it help with your trading focus?

Yes, definitely. It helps me stay relaxed and centred. Trading can be stressful, so it’s important to find ways to calm down. Yoga works for me.

Would you say your daily routine is very structured, or do you keep it more flexible based on how the market is moving?

It’s flexible. I know my strategy, and everything is set in terms of what I need to do. But because I don’t rely on indicators, I have to give the market time to develop setups. I’m not super strict. If the market isn’t showing anything, I step away and give it time. My experience has taught me to be patient and wait for the right opportunities.

How do you keep developing your skills in such an ever-changing market?

The most important thing is to backtest every trade, whether it’s a win or a loss. You have to understand what went right or wrong. Backtesting helps you spot patterns from the past that might repeat in the future. But I’d say the main way to improve is just spending time in the markets. Markets change every day, so you have to be there to understand the shifts. I used to rely on coaches, but now I prefer to learn directly from the markets.

You mentioned you used to work with trading coaches. Why not anymore?

I started with Markus Schulz from Volume Trader. That’s how I got into volume trading. I was successful with it, but it didn’t fully fit my style, so I transitioned to liquidity hunting. Along the way, I’ve taken bits and pieces from different coaches, including some YouTube coaches like Mitik Kaplan, who explains smart money concepts well. Now, I feel like I’ve taken in enough information, and it’s more about refining my own style. I don’t need more external input right now.

Have you thought about becoming a trading coach yourself?

I’ve thought about it, but I think I still need to prove myself more. I’m still developing, so I’ll take some time with that idea and see where things go.

What’s been your most significant experience with losses, and what did it teach you?

When I started liquidity trading, I crashed my accounts multiple times. It was a tough experience, and I questioned whether trading was the right decision for me. That was a dark time, but it taught me a lot. When you crash accounts, you’re forced to re-evaluate everything. If you stick with it and don’t give up, eventually things start to click. You stop making the same mistakes, and your performance improves. It’s a painful but useful process.

What keeps you motivated during tough times like that?

I just can’t quit. It’s not in me. I started when I was 15 and spent three or four years constantly losing money. But I kept going because I knew I had the skills. Now, I want to see how far I can go. That’s what keeps me motivated. And, of course, when you have a good trade, your motivation shoots up. It’s like running up the stairs in Rocky—I can’t stop.

Let’s talk about prop trading. What got you into that?

My last coach, Markus Schulz, introduced me to the concept of prop trading. I’d heard about prop firms before, but I didn’t want to trade with them because I hadn’t heard great things. But once I got more successful with my trading style, I tried the challenge with The Trading Pit and passed on my first attempt. It’s been a great experience. Prop trading allows me to trade with larger capital, which is important for futures trading.

You’ve mentioned that you avoid trading during news events. Can you explain why?

News trading is risky. You never know which way the market will go, especially if you trade in smaller time frames. I still do it sometimes if I’ve analysed the situation well in advance, but it’s a gamble. I don’t recommend it because the market can go in any direction once the news is released.

What’s been your best trading asset in 2024?

Oil, definitely. I’ve also had success with the S&P 500, but oil has been my top performer.

And your least favourite?

Gold has done me dirty a few times. I still look forward to trading it, though. But the Nasdaq is the one I don’t like trading—it’s too fast, and the movements aren’t clear enough for me.

What’s your number one tip for someone starting trading tomorrow?

Get a good coach or coaching and never give up. It sounds simple, but bad things will happen—you’ll lose money, get frustrated, and question everything. But if you don’t give up, you’ll eventually get to a point where it all makes sense.

Thank you so much for sharing your journey with us, Nico. We’re excited to see where your trading career takes you next!

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