Steemit Crypto Academy Week 12|| Homework Post for Crypto professor @fendit || Don't get lost in the fuzz
Hello everyone, it's great to be able to join the class from professor @fendit CryptoAcademy Season 2 - Week 4 (Don't get lost in confusion)
Assignments for this class:
A) You are in this situation: you
bought BTC a few days ago for USD 62K. Suddenly, you see this situation:
What will you do before reading this class? What are you going to do now. Describe in detail if there is something you would like to do differently.
Answer
I am a person with a moderate risk tolerance, so if the value of bitcoin drops and reaches 50K for example, taking into account that I bought it at 62K, I will most likely wait a little longer. Until the price goes up again and finds a new resistance point on the chart closest to the BTC value at the time I bought, I will sell my BTC when it reaches that resistance or see that the value will fall back down.
In other words, because of my tolerance for risk, I would decide to wait to avoid selling too low and avoiding a lot of economic losses.
In short, I will consider all the strategies and suggestions of this class, among which the most important for this situation is to avoid trading for revenge because I observe that the market trend is bearish, because according to the class there are people making re-trading decisions to reduce losses even though actually what they do in most cases is improve it.
The best alternative in this case rather than trading for revenge is to withdraw and sell the BTC I left at a lower price to avoid lower losses, I should definitely pay attention and choose advice from the class dictated.
B) Share your experience when trading:
What wrong have you done, what did you learn from them? If you don't have a lot of experience, you can tell about the experiences of a friend or acquaintance.
Answer
There have been so many trading mistakes I have made, due to lack of trust and fear of losing the money / price of coins I bought. Some time ago I bought 3,600 Dogecoin at the price of $ 0.175 after I bought it the price of Dogecoin went down, and I thought Dogecoin was too controversial to sustain I decided to sell all of my Dogecoin for $ 0.014, after I sold it a few weeks later. The price of Dogecoin rose to $ 0.32. This caused a lot of regret for me because instead of making a real profit, I could just sit around regretting it if I had not sold it maybe it would have been a huge profit for me. This is a mistake for me, not sticking to a plan solely relying on emotion and greed.
One of my biggest lessons is making plans and then doing my best to stick to those plans, both during bearish and bull markets.
Which of the strategies discussed in this class did you find most useful? Why?
From that class, a lot of trading psychology was explained and I have to admit that I enjoyed the whole class. One strategy that I find very interesting and useful is "Don't let your emotions control you." First, the market is a repetition of events and with this, the market gets emotional because people want the same events to happen. The market price is traded freely by the market and emotions will only push it up or down. Your attention should be to graphics and not noise. Many people have experienced FOMO because they heard the coin will go to 1000% at once and so they decide to trade when the coin reaches 700% so they don't miss the pump or go up but then, the coin starts to fall and they still hope that it will return to formal levels the all-time high but then, it's gone.
Answer
There are two analyzes that affect price movements in the market, namely fundamental analysis and technical analysis. With news like Elon Musk, this is considered as news from an influential figure which will certainly affect the price of tokens as if a negative speech from Donald Trump would lower prices. Actually I make room for fundamentals in trading and when I hear news like this, I don't often put all my funds because that can also be a way for big players to sell their coins, so I will only put a small part of my money. assets into it.
When trading, I will make sure I set a stop loss. You don't know what the market is holding, so you need to be prepared to lose some of your funds but not all (even when you trade with funds you can lose). Never forget the Stop-Loss button and the stop loss price which you can use to comfortably exit the trade if something goes wrong.
I can conclude that there are many things that we should avoid in the world of trading, including things that are taught in class such as; overtrading (avoid doing multiple trades at the wrong time and in altered ways), revenge trading (avoid buying more cryptocurrency at a lower value than initially invested) and among other bad decisions on bad times.
The strategy studied is: investing at the right time according to the studies carried out, or let's say the future value of cryptocurrencies to invest in the best way, consider that trading is a process of analysis and interpretation and not a subjective or emotional process, and not investing, what is not. needs to be lost.
The general conclusion is that when trading we need to be very careful and to try to do something well and on time, only by following all the class recommendations can we bet on better profits.
Thank you for being part of my lecture and completing the task!
My comments:
Nice work! Your explanations were simple and clear, which makes me see that you got the concepts of the class!
Good work! :)
Overall score:
6/10