The NFT Trading Guide - Psychology

Patience

• Short-term flip requires several days or weeks. You can rarely exit a few hours after buying.
• The best flip (> x 5) usually requires months. They need a bull run or a special event.
• Examples I experienced:
  • Minted 1st Tomorrowland NFT at 3 in mid-2022, sold it at 15 in the end 2022
  • Bought 10 mindlings at 0.5 in mid-2022, sold them between 3 and 4 in the beginning of 2023
  • I bought Oggy presale in February 2023 at 4.5 and sold it after mint at 11.5 in march 2023
• If you do x2 or x3 in less than 48 hours, don’t be patient, sell or gradual sell.

FOMO

• The Fear Of Missing Out is the hardest feeling to manage.
• The FOMO will make you buy when the floor price already climbed. If something already pumps, take time to push your analysis of the situation. It’s too late 99% of the time during a bear market. During a bull, it’s trickier, but most of the time, it will be a bad play.
• You will feel the urgency to buy when a collection you like goes up. You buy it at a price you would have never done a few days ago. This is the FOMO.
• When Many people will feel like you, the price will increase significantly. Enough for the whales (the ones who bought when the FP was low) to start selling their NFTs. Which will slow down the floor price increase. At that time, people will be scared and list their NFTs massively, causing the floor to go down badly. You lose money after an impulsive buy-in.
• There is the FOMO of missing the next Degods you still don’t have, but there is the FOMO of not selling the Degods you think you have. This one is even more problematic.
• The FOMO will push you to hold poor collections or never sell great ones that will have ups and downs.
• Remember that when you’re in profit, you can’t lose if you sell: you can buy the same collection later or get other new opportunities.
• If you feel that a collection will do great over time, you can buy several NFTs of it, sell it gradually, and keep some, whatever happens. And rebuy them when it dumps.
• Keep for x10, x100 only very high conviction play.

Mental Health

• Don’t invest money you can’t afford to lose. The stress will kill all smart decisions, and loss will make you feel bad.
• Losing money always makes feel bad. Keep in mind this game is hard. Think about what you did wrong and note the mistakes you made. If you did everything well, remember that luck is not always on your side.
• Ignore others' successes, they have a different story than yours, and luck is still in the balance.
• If a collection stresses you because you are unsure if you should hold it or not, sell it. Bad mental conditions lead to poor decisions.
• It’s easier to hold NFTs with good art
• Discord badges and gamified staking impact your emotions, they shouldn’t impact your investment strategy.
• Discord badges and gamified staking impact your dopamine. Embrace them if you need to feel energized.
• You can’t buy every good collection, accept not to own everything and miss opportunities.
• During bear cycles, it’s better to hold the stuff you like from builders and the community you enjoy. You will be comfortable keeping them and will be much happier if it finally gives you profits.
• Buying a 1/1 you love occasionally may not be the best for your folio , but will give you an additional PFP or Picture you will be proud of. Remember, you have dopamine needs :).

Enjoy! NFTs are mostly entertainment: communities are fun and can be seen as sports supporter clubs. So don’t put yourself at risk financially. If you lose everything, you won’t care because you had good times with others.