How to become Robin Hood

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I’ll be using this report to source this document. 

The NarrativeMost people love the timeless story, Robin Hood. The story of a tyrannical ruler that absorbs all the wealth and resources of a once-great kingdom. A man of the people that rises up and redistributes the wealth amongst the people.That’s Robin Hood in 2 sentences, but there have been many variations over the years. But they all hold one commonality: people getting what they deserve. The calloused mill worker receiving his true salary, the field laborers eating the grain they reaped and sowed, and the improvident king being killed or exiled. RobinHood, the app, allowed individual traders to become their own Robin Hood. Retail Traders could take back their wealth from the stock market! RobinHood didn’t start a retail trader revolution but it was a significant catalyst. As crypto trading, commission-free trading and margin trading became more available, new and inexperienced self-proclaimed Robin Hoods could enter the fray of the market. Retail traders could come and take back their wealth that they felt was owed to them or taken from them. Penny stocks, crazy options, or crypto booms from ICOs or memes made some people millionaires, whether those millionaires were deserving or not. What we see now is millions of Robin Hoods from across the world who have come to the NFT Nottingham Forest, bows in hand and money on the mind. Many of those coming to NFTs have limited experience or have 1 significant data point that they believe will make them rich, others are following the next man in front of them. BUT there are some that are genuinely successful, some that are making gains that are dwarfing the rest. The truth is you can make money in NFTs but you need to be diligent and understand some of the best habits for NFT traders. So with that being said, let’s begin! Top stays on TopThe last time I wrote, I discussed whether you should mint NFTs. Well, flipping NFTs is, statistically, the best way to make money, with 65.1% of flips resulting in a profit. This seems high and I’m not sure where to find data on stock market trades to compare, but if true, it’s huge. Unsurprisingly, the top 500 collections (historically) allocate close to 95% of all flips on OpenSea. 

What you’ll find is that the top earners are the top movers and shakers as at the time of the report. A majority of the capital follows or moves with the top earners in the space, much like many other markets. The top 95 collections at the time accounted for 50% of all flips on OpenSea. 

In the chart above, you can see again that the top 30% of wallets account for 87% of all NFT flips. You may have a question about the 107% returns, which includes the negative returns from many traders. 

The ProsWhat does this tell you? Follow Big Money.

Do not blindly follow or copy trade whale accounts. There are plenty of Whale-tracker Twitter accounts, (these use those to see where money may be moving into. Why did this wallet with 5 BAYCs, 6 Azukis, and a Doodle just buy into this metaverse platform with 50 ETH? What are they seeing? Major players are the ones making major money.

Stay on the Billboard.In life, it’s cool to know of a band before they blow up. The bragging rights are even cooler when money is involved. “I bought X back in Y and now it’s 10x” that’s a bragging right. You know what is not a bragging right? Buying something that no one wants. Buying an NFT outside the top 500 current and all-time collections is a gamble. There’s a chance of no return due to a lack of volume in sales. Does your friend have a cool new collection that he thinks may be great? If it’s not in the 500, I wouldn’t touch it. I think you could even tighten the focus on the “current/daily” billboard to the top 100. 

Trade Often, Trade WellThe best traders are those that are constantly making moves. The phrase “Practice makes perfect” is flawed. “Perfect/intentional practice makes perfect” if you’re just trading to trade. You may as well play the lottery. Find ways to make moves and pay attention to the market and why certain trades are successful and others aren’t. Also, shoot your shot frequently, if you can afford to.

Next, we’ll be covering the 5 types of traders, statistically, in NFTs! I just quit my job so I plan on dedicating more time to this as time passes! As always, this is not financial advice, and please do your own research.