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NFT Checklist: Here’s What You Need to Trade

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Written by Timothy Sykes
Updated 1/25/2023 8 min read

Last night’s NFT event was AMAZING. Did you miss it? Catch the replay here.

My Trading Challenge students Matthew Monaco and Adam Jarrett are both killing it in the NFT market. Matthew made over $63K on two NFT trades (check them out here and here).

And Adam’s made over $1 million on NFTs. Their success has really opened my eyes to the opportunities out there.

So many traders want to make bank on NFTs. But a lot of traders are losing money because they’re approaching the market all wrong. They’re not educating themselves, and they’re choosing random projects and falling for scams.

I want to help you do better.

That’s why I created my NFT club — I want you to be PREPARED. I want you to understand how NFT trading works so you can take advantage of the staggering potential of this multi-billion dollar market.

Preparation starts with the right resources. Here’s my list of what EVERY trader needs to get started with NFTs. But before we do, a little background on why I’m so excited about NFTs…

Get started with NFTs here!

Why NFTs?

NFTs are creating some of the most exciting opportunities for traders right now.

It’s exciting to see the profits that my Trading Challenge students have been making on NFTs. But it’s not just a trend … It’s a revolution. And I believe it has staying power.

One reason is that there are a ton of exciting projects coming down the pipeline.

For instance, Coinbase currently has over 89 million users … It’s getting ready to go live with its own NFT platform.

To put that in perspective, right now one of the largest NFT exchanges is OpenSea, which recently passed one million users.

This could be HUGE. I’m so inspired that I even created my first NFT collection!

 

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Ready to get started? You’ll need a few things, starting with…

1. Crypto

Most NFT trading is conducted with cryptocurrencies. So if you want to trade NFTs, you need cryptocurrency. That means you need a crypto trading account.

A crypto trading account is sort of like a stock brokerage account (click here for a special opportunity with one of my top brokers). It’s possible to use a broker that offers crypto — but they may have limitations. That’s why a lot of crypto traders choose to work through a crypto exchange.

Some popular crypto exchanges include Binance, Coinbase, and Kraken.

You’ll need to link a payment method to your account to buy coins. Usually, that means funding your account directly or linking a debit or credit card to the account.

Want more info on crypto? Matthew Monaco made a beginner’s guide to crypto — check it out here.

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Next, you need…

2. A Crypto Wallet

Your crypto wallet isn’t just a means for moving around your currency. It’s also where you’ll store your NFTs.

There are two types of crypto wallets — hot and cold. A hot wallet is a digital wallet that’s connected to the internet. A cold wallet is not connected to the internet. There are advantages and disadvantages to each type — check out my detailed post here.

Another consideration — most crypto wallets do NOT support multiple currencies. So depending on the types of coins you’re interested in, you might need multiple wallets.

Once you have crypto and a crypto wallet, you’re all set to…

3. Buy NFTs

NFTs aren’t stocks. But like stocks, you buy them on a marketplace.

Like crypto wallets, NFT marketplaces will be tied to the blockchain and crypto they accept.

For example, if you want to buy ethereum NFTs, you’ll probably want to look at marketplaces like OpenSea and Rarible.

I prefer Solana NFTs for several reasons — including the fact that they’re better for the environment. Considering my work with Karmagawa, that shouldn’t surprise you. Some marketplaces include SolSea, Solanart, and Magic Eden.

But it’s not as easy as picking a marketplace and buying something random.

Like with stocks, choosing random NFTs will give you random results.

As Matthew shared in a recent post, he likes to do his research before buying an NFT. He looks for things like rarity and social media hype behind an NFT or collection.

In short: You need a plan. 

That’s why you need the final and most important thing on this list…

4. An NFT Education

I’m always talking about how traders need to invest in their ‘knowledge accounts.’ I’ve been saying it for years…

I created my Trading Challenge to help penny stock traders learn the rules and develop foundational and ongoing knowledge and trading skills.

The new NFT program was designed to help traders develop skills specific to the NFT market.

I paired up with Adam Jarrett to create this course. It goes way beyond the basics. Among other things, you’ll learn the three-step NFT trading system that helped him make $1 million in just 10 hours.

You missed the launch yesterday … But there’s still time to take advantage of this opportunity.

Check out the replay here and start your NFT journey! 

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Ready to Take the Next Step?

I don’t care if you’re trading stocks, options, crypto, or NFTs — you’ve gotta be prepared.

Plenty of people are interested in the mega-hot NFT market right now.

But they’re not seeking out the right resources or investing in their knowledge accounts. 

Sadly, because of that, many newbie NFT traders will fail.

Don’t be one of them. Take the time to pursue an education. Give yourself an edge in the market. Start now. 

Are you as pumped about NFTs as I am? Did you make it to my event … If not, did you check out the replay? If you’re on board, leave a comment on this post and say “I WILL BE PREPARED!”


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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”