Categorized | Domaining Tips

We’re All Brilliant Traders in a Strong Uptrend

Posted on 28 March 2017 by Andrei

I’ve read a post on TheDomains about Dominic, a short domain investor who shared his story on NamePros and first of all, I think he deserves our respect for having the courage it takes to share his numbers in an upfront manner.

In an industry where many adopt a “mine is bigger than yours” (domain sales, of course) mentality, it’s refreshing. Most domainers love talking about their winners all day yet fail to refer to their losers as well. As such, newbies end up mostly reading blog comments or forum posts about successful domain sales. Naturally, they therefore assume making money in the domaining industry is a lot easier than it actually is.

As Dominic pointed out, trading domains (short domains, in his case) is a lot easier when the uptrend is strong, as it was during late 2015 to early 2016. If the uptrend is followed by a downtrend or sideways movement, trading becomes multiple orders of magnitude more difficult or even downright impossible.

Especially after factoring in commissions charged by platforms such as NameJet and Sedo as well as of course escrow fees and payment processing fees.

It reminds me about a post written by someone who initially made and then lost a lot of money trading dot com stocks. He mentioned that at the beginning, he felt like a genius, as if everything he touched turned into gold. He considered himself a brilliant stock picker and his results seemed to confirm that.

What he failed to take into account is that when an entire asset class goes up (be it dot com stocks or short domains), everything everyone touches turns into gold.

The most important lesson, in my opinion, is this: we’re all brilliant traders when the uptrend is strong. I’d highly, highly recommend reading Dominic’s forum thread as well as the post on TheDomains about it.

4 Comments For This Post

  1. Sanwal Memon Says:

    Hi Andrei, a great read there!

    I have been domaining under my fathers name for the past 10 years (21 now) and whilst i’m still young i consider i’ve seen alot in the domain market. Domaining is definitely better than trading stocks, whilst there may be some losses but mostly in my own opinion personally have been wins for me.

    There will always be a trend, as domains shake hands with other domainers day in and day out, however one thing remains flat which is end user demand, because you can’t call it a trend if you’re looking at just a couple of people who at some point might think it’s an investment they want to make.

    But nonetheless a great post for people starting out just now, as time goes by the wholesale profits will start shrinking, but the last one will always turn out to be the winner.

  2. Raymond Hackney Says:

    I think you mean you read an article on as I wrote the article about Dominic.

    Thank you

  3. Snoopy Says:

    It is a nice little reality pill. The fact is people lose money on domains a lot of the time, some areas are worse than others. I’d say new rages are almost always a bust nowadays.

    The trend names people have lost a lot of money on in the past. Millions and millions lost around 2007/2009/2010 from stuff like when they went from $60 minimum to pretty much nothing. It is basically gambling that kind of name as most have no enduser potential.

  4. Andrei Says:

    @Raymond: ooooooops, sorry, I’ve accidentally used the word “written” instead of “read” 🙂