I asked 5 experienced NFT Traders about trading NFTs. Here’s what they said.
Bear market… still here.
The good thing? the best time to learn is during bear markets: less noise, things going on and more time to focus on other stuff.
After the recent events impacted crypto, an article/thread asking NFT traders a little about their tips/trading/risk management strategies so others can learn and prepare themselves better for the next bull sounds good.
I asked 5 NFT Traders about the topics above, and here’s what they said (in random order):
- Franklin (@franklinisbored on Twitter)
Franklin is one of the largest holders of Bored Ape Yacht Club, the popular ETH NFT collection. He currently holds 59 apes and plans to acquire more. I asked Franklin to share a little about trading tips/strategies/things he found useful during his journey.
Since it is difficult to keep up with thousands of projects and discords, he mentioned that icy.tools and Twitter are his top resources (icy.tools is an NFT data website where you can track top trending collections and other features worth checking out), and he also said to always calculate the minimum to sell in order to profit.
He also mentions that if you feel FOMO over a project, wait 24 hours. If the floor 3x’s overnight, don’t worry, there will be more opportunities.
2. NFT Doctor (@NFT_Doctor33 on Twitter)
An active member of the Boogle community, a SOL NFT project based on auctions, where all of the NFTs have sold for thousands before. NFT Doctor went from 0 DeGods to 10 DeGods, sold some, bought a house then went from 5 DeGods and 5 t00bs, to 13 DeGods and 16 t00bs today.
He said collection knowledge works best for him (knowing every trait of a collection (how much people like certain traits, etc), following AMA’s and announcements), and doing the exact opposite of what others do. He also mentioned DeGods are the best collection to trade with on SOL since it has many ups and downs (which is very true as I’ve kept track/analyzed DeGods charts before, performance on bear/bull markets and noticed the ups and downs).
Important: he never forgot to take profits.
3. Sturdy (@ShmoneySturdy on Twitter)
An active member of the Okay Bears community, and holder of many other collections as well, I asked him to share a little of his tips.
My biggest tip: when a project mints out and the volume is insane, Give it a day or two. If everyone is bullish and posting all over Twitter how this is the next big thing, and this is the greatest pfp of all time and shit like that, that’s ur cue to sell.
When I asked him “what do you mean when you say give it a day or two?”
He answers: Don’t rush to sell.
He expanded on his answer a little bit more:
So the way I feel about that is to be smart. Everything that goes up must come down. If the entire ct is hyping a project up and the floor is rising incredibly fast, eventually that floor will drop just as fast. Regardless if it’s a legit project or not, when everyone is hyping the project, sell it.
Once the hype dies down, the floor starts to adjust to its actual worth. At that point, if u believe in the project u can buy back in and get more for your money.
Instead of holding that 1, you can sell it at the top and buy back 3 when it drops.
4. Solami Mommy (@SolamiMamis on Twitter)
Mamis is an active trader, regularly posting TA on his Twitter account, writes threads, and shares educational content constantly. I asked him about risk management (which people tend to overlook).
My strategy for risk management lately has been trying to understand what the market is giving us. There are times for capital preservation and times for capital accumulation, and I think understanding the difference between those is where you find success as a trader. The 10x-100x meta is long gone. Now being able to compound on your positions and stack sol is more important than ever. Surviving until the market is better and not being washed away is the key to that.
Otherwise, it doesn’t matter if you are “early” if you have no more capital left.
— Solami Mamis
5. JK (@jonbking on twitter)
JK called the ATH of DeGods a few months ago before DeGods hit it, and constantly posts TA/educational content on his Twitter account. His pfp is a y00ts, the 2nd collection of DeGods where he also holds a few more. I asked him to share a few tips/risk management and trading strategies.
Here’s what he said:
I’m the boring trader who starts every trade with “what if I’m wrong?”.
How will I know that I’m wrong, and how much money will I lose if I’m wrong? Am I willing to ride this to zero, -50%? -10%? Is there liquidity for me to exit the trade if I need to?
What is the expected slippage of that exit (sometimes you think you are selling at $100 but get filled at $98)? Then and only then, I start thinking about the profit targets.
Given the profit target, and given how much I stand to lose, is this trade worth my time? Is it at least 3 or 4 to 1 in terms of reward to risk?
— JK
What can you learn from this? (in random order)
- TAKE profits. You can still enter that collection again in the future! (Like NFT Doctor did).
- Calculating minimum selling price to profit and using tools can help your trades (Like Franklin mentioned).
- Risk management is incredibly important, that’s why JK considers how his financial situation and risk would be if the trade went wrong, he always makes sure to calculate risks (like he explained previously).
- Learning to decipher between the times when is best to preserve/accumulate capital to be prepared for future opportunities (Like SolamiMamis said).
- Learn to identify when’s the best time to sell (Like Sturdy mentions).
These are just a few things the traders wanted to share. Thank you all for sharing some of your best tips!
Disclaimer: This is NOT financial advice. This article is only for entertainment and educational purposes, keep in mind the traders shared their PERSONAL opinions/experiences on trading. DYOR.
The Trader Room will be a series where I’ll keep interviewing traders on tips/trading/risk management strategies. This is part 1! Let’s see who appears in part 2 (;
Want to learn from a trader? What specific questions? Nominate them under my thread/DM me so I can feature them next time!
Are you a trader who wants to be featured in my articles and following threads (for free)? Let me know in the thread replies or DM me!
Thanks for reading! I hope you enjoyed this read, below is the thread on this topic:
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