Can fear of missing out (FOMO) take NFT stocks back to new highs?
In this week’s episode, hosts Kim Ann Curtin, Stephen Johnson, and Tim Bohen talk about hot sector manias. The NFT stock craze takes center stage.
Tim’s been around a long time. He’s seen this kind of thing play out again and again. But what makes each craze different from the next one? Is it possible to predict when they’ll start and end?
NFTs (non-fungible tokens, if you didn’t already know) hit a fever pitch recently. And stocks issuing press releases related to NFTs took off. But will an NFT stock have what it takes to run again?
Check out what Kim, Stephen, and Tim had to say about the latest craze in this week’s episode of the SteadyTrade podcast!
Plus, Kim’s book “Transforming Wall Street: A Conscious Path for a New Future” is now an Audiobook! And she says she found the sexiest and most compelling book narrator you’ve ever heard.
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NFT Stock Mania: Trend or Fad?
It started when digital artist Beeple sold his NFT artwork. “Everydays: the First 5000 Days” sold for a whopping $69 million! Kudos to that guy — but how crazy is that?
NFTs are essentially a digital file of an artist’s work. They come with a certificate of authentication that states it’s an original creation by the artist. But why are they worth so much?
Tim thinks the hype around them is nothing new. And he recommends one of his favorite books: “Extraordinary Popular Delusions and The Madness of Crowds” by Charles Mackay.
It provides tons of insights for traders who want to understand hot sector mania.
The NFT stock madness reminds Tim of the Dutch tulip mania in particular. Tune in to hear how it provides clues about what’s happening right now…
We’ve all been there, right? Tim has. And he understands the madness firsthand. He says he once paid a guy $500 to save his place in line for a Nintendo Wii!
So what is it about human nature that drives obsession over one specific thing? Is there something we can all relate to going on? And how do we play to win?
The team breaks down exactly what they think is going on in this week’s episode.
NFT Stock Lessons: Greed Is Normal
Bohen says, “greed is the great equalizer.” It doesn’t matter if you’re naturally smart, educated, or not the smartest tool in the toolbox. Age, gender, or race have no exemptions … Greed affects everyone.
Stephen agrees. He says nothing creates more opportunity than a hot sector. The plays keep coming, generating fresh bursts of trading enthusiasm.
If you miss the leader, a fresh new opportunity is on its way. The same thing can happen with an NFT stock.
Takung Art (NYSE: TKAT) was the leader in the NFT stock sector, the first to associate itself with NFTs. Over the course of its popularity, it gained around 800%!
But what if you missed TKAT? How do you find the sympathy plays that follow the leader? And do they produce amazing gains as well?
The team covers the ebb and flow of hot sectors and the NFT craze. And Tim shares what he thinks has to happen next for an NFT stock to take off again.
Plus, will Stephen throw his hat in the ring and join the craze? Will he buy his first NFT artwork?
This Time Will Be Different
Even when greed leads you astray, there’s something in humans that makes us want to believe: “This time could be different.” Tim says it’s how billion-dollar Vegas casinos make their money.
Stephen understands the mentality. He says it goes like this: “Even if you lose over your entire lifetime, today could be your lucky day. And you might never have to play again.” Whether it’s an NFT stock or a slot machine, the motivation is the same.
Kim’s seen this behavior in action too. It’s the mindset that’s kept people playing shell games in New York City since she was a little girl — and well before then. People think they might be the exception to the rule.
She calls it the “intermittent reward system.” If you win sometimes, or if you see someone else win once, that’s all it takes to believe it’s possible. And you’ll accept the consequences of losing for the hope of winning.
Tim recommends reading “The War of Art” by Steven Pressfield to get your head on straight. It’s written for artists but the mindset it drills in is exactly what a stock trader needs to know to stay in the game.
Find out what the secret to staying power is before you trade your next NFT stock, all in this week’s episode!
What Do You Think?
So what do you think of hot sector plays? Have they worked for or against you? Do you have an NFT stock on your watchlist? We’d love to hear what you think, so drop a comment.
Remember: if we select your question or comment as an on-air topic, you could win a SteadyTrade mystery gift box. Leave a comment below or on YouTube!
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Kim Ann Curtin