Crypto Academy Week 12 - Homework Post for @Fendit - Don't get lost in the fuzz

Hello great minds,

Trading can get emotional at times, especially when it comes to the two
extremes: profits and losses – it is easy to get caught up in your feelings and
make poor decisions at this point. The importance of good trading
psychology and how to achieve it was emphasized, thanks to @fendit. Here's
how I'm going to avoid "getting lost in the fuzz."

Source:
(https://pixabay.com/photos/excited-smiling-female-college

A) Place yourself in the following situation:

You bought BTC a couple of days ago at a price of USDT 62K. Suddenly, you see that this situation is going on; What would you have done before reading this class? What would you do
now? Explain in detail if there's something you would do differently ?

Source:(https://pixabay.com/photos/entrepreneur-idea-competence-
If I bought this BTC at 62k and then suddenly noticed this change in the market
chart, I would want to buy more BTCs right away with the mindset that the
market price will continue to rise and then resell when the price reaches a
certain value, such as 70 or 80k.
This class has taught me some important trading principles, including the
importance of investing "at the right time." Without proper timing, a trader
is bound to make mistakes, which could result in the loss of all my
investments. Self-confidence is another factor that would help me trade and
manage my investments. Self-confidence can only be gained by having the
necessary knowledge and skill set in the crypto market.
Because, in the absence of the aforementioned factors, a trader may begin
to make rash decisions based on the advice of others. With this information,
I would carefully research the market for several hours to days (not on a stretch though) in order to make an informed decision
If I had bought this coin at 62k and the market value suddenly increased to
over 64k, based on my specific trading plan, I would determine if it is time to
sell based on my profit margin, if it is a good time, I’ll sell my BTC and then
study the market until there was a downward trend.

B) Share your own experience when it comes to making mistakes in trading:1. What mistakes have you done when trading and what did you learn from them? If you have little experience when it comes to trading,tell if you got to know about someone else's experience.

2. Which of the strategies discussed in this class you find the most useful for you? Why?

Source:
(https://pixabay.com/photos/mistake-error-question-mark-

(B1.) I have a basic understanding of trading, but in the year 2018, a friend of mine lost his entire $250 live account. I discovered that he disobeyed the instructions given to him by his instructor.He had increased his lot size from what his instructor had set on his account, which resulted in him blowing his account and losing his investment, which was unfortunately all his savings at the time. When I asked why he had increased the lot size, he explained that he wanted to make more profit on his trades as soon as possible. This was a trading mistake he later regretted due to greed, and it has had a negative impact on his trading perception.
I've learned from his experience that it's critical to follow the instructors' trading and investment guidelines, as well as to create and stick to a specific trading plan. This class has made me realize how important it is to trade without emotions and to maintain a high level of discipline and self-control.

(B2.) One that stood out to me was revenge trading, because after losing a trade, everyone would want to go on the offensive. However, this class has taught me that this is a risky decision for any trader to make. I learned in
class that trading is all about being analytical and focusing on numbers and facts rather than my emotions or thoughts. Every other strategy, I believe, is based on this knowledge, because losing or profiting from a trade is
dependent on it.

Place yourself in the following situation:

You're browsing Twitter and you see this:

You see that whenever this kind of things happen, BTC prices rush. What
would you have done before reading this class? What would you do now?
Explain in detail if there's something you would do differently.

(C) Any trader's adrenaline levels will spike when they see breaking news
like this on Twitter as such news tends to increase rush. Before reading class, I would have purchased more BTC in the hopes that the price would continue to rise, and I would sell my BTC when the price reaches a point where I can see that I would be making a significant profit from the trade.What I would do now is spend a few days studying the market trend and
conducting my market analysis as at this point there will be a temporary spike in the market due to the rush. If I had a trading plan, this is the best time to stick to it to avoid making any decisions based on someone else's advice or perceived trends that could harm my investment; if there’s none, it is an opportunity to create one and make good financial plans.

Source:
(https://pixabay.com/photos/financial-planning-report-

If I HODL some currencies, the peak of the surge in price may meet my
percent expectation (based on my trading plan) and be a good time for
sales; if I intend to HODL some coins, however, this point is not a good time
to buy; it will be best to wait for the coin's price to drop before purchasing it
(i.e. for the surge/excitement to die down).Because my investment and savings are my personal responsibility, I would also seek advice from experts before making a final decision.

Conclusion

I've learned from this class that I need to exercise some control over my fear and greed if i want to be a successful crypto trader.