NFTs are down📉
Emotions are high📈

How to not make emotional decisions.

(1/10) 🧵👇

The Market 💥

The NFT ecosystem is a market just like any other, there are buyers, sellers, winners, losers and holders.

The rational behind you decisions needs to come from the type of decisions you decide to make with the capital you have allocated.

(2/10)

Giving a moral attribute to price causes a change in decision making

High price = Good
Low price = Bad

Will always interfere with decision making or any plans you had created.

Create a plan, stick to the plan.

(3/10)

Punk 6529 writes a solid piece in how to change your mindset when it comes to investing in NFT pieces.

Highly recommend a read.

(4/10)

1. Don't make decisions on PnL 💰

Changing PnL induces emotions

• Find the sweet spot for exposure
• Not too little to lose motivation
• But not too much to risk losing incentive
• Risk level may vary depending on the market stage

(5/10)

2. Listening to other ❌

Everyone believes their own BS

Avoid following people
• Who flaunt gains
• Have extreme bull/bear biases
• Always wrong

Their takes literally don't matter and risk affecting you OWN decision making.

(6/10)

3. You will get it wrong 📉

Not every investment you make will be the right one

• Some will go to 0
• Some you wont sell
• Some you forget to plan
• Some are emotional decisions

Thats fine, as long as you are aware there is NO ONE else to blame but you.

(7/10)

4. Revenge Trade ❌

This is about ego than anything.

You lose an investment and all you think is "I was wrong, need to make it back".

So you jump in and buy the next mint or the next influencer shill, you make riskier and riskier investments to make it back.

(8/10)

5. Expand horizons 🔎

NFTs are in their infancy and have just had their first cycle and exited into the worst macro conditions for over a decade.

Repricing is expected, however value will be formed during these times of low participations.

Find and bet on the builders. (9/10)

In short

• Don't be affected by mass hysteria
• Always have a plan for the highs and the lows
• Look at months and years not hours and days
• Don't make decisions on PnL
• DON'T REVENGE TRADE

Remember

First cycle, new industry, no one knows what going to happen.
(10/10)