CRYPTOACADEMY HOMEWORK// #FENDIT-S2WEEK4// 5/5/2021//@MOBIBLISS

in #cryroacademy3 years ago

To be honest, this lecture is an eye opener. It has helped me understand some mistakes I have made in trading and it is giving me a chance to avert future mistakes.
For example, suppose I bought btc coin at the price of 62k usdt, and the price is increasing; ordinarily I will simply be in excitement that I am on profit and bask in the believe that the price will continue to increase. This in effect is a huge mistake since there is a possibility of price crashes. It will be like someone driving on a clear highway and thinks that there would be no need of brakes. The lecture has helped me see the need to set a stop loss limit, it is indeed something I could've ignored.
MISTAKES I HAVE MADE WHILE TRADING
Just as the saying goes: " experience is a better teacher", I have made mistakes in trading that this lecture has further helped me realise. One of such mistakes is revenge trading. During 2018 when I first tried crpto pair trading using a broker called Iqoption. I was exited because it was my first trading on crpto, so I chose crpto pair eth/btc and selected a position lower. From what my instructor told me I was convinced that the price of ether will drop, but that didn't happen, and I lost my $10 . I became emotional, trying to get back what I have lost I made more five trades as against my policy of one trade per day. Although I won two of the trades, but I ended up losing more. Revenge trading is wrong and I am glad to learn from here.
STRATEGY I LEARNED FROM THE CLASS
There are many strategies discussed in this class, but I have benefited more from
setting a stop loss limit. The thinking that a coin will always be on the increase might lead to loss of fund. This happens often due to the volatile nature of the market. Take for instance, during sometime in February this year I bought xrp coin worth of $50, by the end of March it has appreciated to around $200. I was happy, honestly I did not even know I need to set a stop loss limit. By mid April, the coin has fallen below $118, You can see a huge deficit.
Another good strategy is to avoid greed and fear
While I will not say much about greed, yet I know that there is this panic in me while trading. It happens that any little depreciation in the price of a coin will make me want to sell it and get another coin. This makes me keep jumping from one coin to another. Sometime late last year, link coin was around $13, while wing was $11.5. I bought the both coin and they dropped in price; link went to $10.5 and wing $9.5, I sold them and bought another coin. Now check out the price of wing and link. On April this year link was around $65 while wing was around $44. So fear can hinder profit in the world of crpto.

BUYING WHEN COIN IS ON A RUSH
let's say I saw a news on twitter, " tesla can now be bought with bitcoin". Such news may definitely create a rush in bitcoin. Before now, I would want to buy bitcoin without making any analysis, and by then I will be buying it at a high price. It will be good to first do some checks, analyse the price movement within days and know the right time to enter the trade. The recommendation is to buy when the price has dropped a little.

CONCLUSION
Among the mistakes I have made as a beginner are revenge trading and failure to set stop loss limit. These led me to loses. It is good to handle one's emotions while trading. One do not need to be greedy or be caged by fear. These tips leads to successful trades.

@fendit
@focusnow
@trafalgar

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Thank you for being part of my lecture and completing the task!


My comments:

Your works seems a bit messy. If I were you, I'd have presented it a bit differently and also, I'd have given a lot more detail, all answers are really brief and vague.
As well as this, focus a bit more on structure and markdowns next time!


Overall score:
2/10

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