{Steemit Crypto Academy - Season 2, Week 4} Don't get lost in the fuzz || Homework submission

I am here in crypto and on Steemit from last more than 3 years. I was having literally zero understanding of blockchain and crypto before joining the Steemit platform.

I have learned something about it over time by here and there but after this amazing initiative of Steemit Crypto Academy by -steemcurator01, we have got a golden opportunity to learn about crypto in an organised manner.

For the last few weeks, I am going through various sessions by talented crypto professors here but it is the first time I am submitting my homework.

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Question A

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.

Answer

What would you have done before reading this class?

I have been in the trading of share before crypto and booked only losses till now, never earned any profit expect some small profits. Now in crypto I also do same random trades. Mostly I trade randomly so, I would have, as always, sold BTC at a loss, out of fear. And then goes through stress and disappointment as usual for some time.

What would you do now?

After reading the lesson I would try to change my trading habits. Here I am using the word"try" as it is not possible to change habits overnight. It only changes over some time with firm determination.

After attending the class I understand that Trading is also a matter of getting into the investment at the right time So definitely I would avoid random trading. I would think twice before entering BTC at its peak at 64k.

I would ask myself

• What is my target to book profit?
• How much loss I can bear?
• Should I wait for correction to enter or enter now to take advantage of fuzz?

Obviously the FOMO factor will be here at ATM of BTC @64k. So after analyzing myself if I take a position in BTC at that peak, immediately I will set stop loss according to my risk-taking capacity. At the same time, I will strictly follow my profit target if it's achieved.

Question B

Share your own experience when it comes to making mistakes in trading:
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.
Which of the strategies discussed in this class you find the most useful for you? Why?

Answer

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.

I have both experiences, myself as well as my friend's.
I have done a lot of mistakes, the most important is never went through technicals in details. Most of the time I just trade and took position because I like any perticular coin or sometimes do not take position because I do not like for any reason, or sometimes after any breaking news!
Personally I do agree with professor that Never invest money that you're not willing to lose and I always try to follow that. Even I do not believe to invest all the money at a time which I have for trading. I think we should invest/trade in systematic plan and not all the money at a time. But at the same time it is very difficult to follow this rule so either I do not get sizable profit and most of the time exit with loss.

One of my friend borrowed money to trade in the crypto and have lost a huge amount and now in debt burden.

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

No doubt all the strategies discussed by professor here are very helpful and knowledge improving but the strategy Do not let your emotions control you is the most useful for me. Being a random and emotional trader I must overcome this condition to have a profitable trades.
I always depend on the tips given by others , as I do not research my own before buying. It is true that most of us buy any coin when it comes suddenly in the news and I also did many time the same and become traped as I got the tip the coin was at the peak. Because I didn't enter with any planing, strategy and research the fear factor become heavy on me when the coin was corrected and I booked the loss. Next morning I saw it was above my buying price but I was out of the game and didn't have courage to re enter.

Question C

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.

Answer

What would you have done before reading this class?

Being a random trader such type of news encourage me to take entry so I would definitely have entered in the BTC rally without any second thought!

What would you do now?

After attending this class defiantely the sinario is not the same for me. Even it is very hard to get rid of any habit but after getting such news at least I would try to control my emotions and will ask myself why I am taking this sucidal step in which I have lost money many times?
Trading psychology explained by professor here in this class will definitely help me to change my mind set. I won't take entry blindly after the news. It may take some time to analyze the situation but I will wait for the right time when it will go in slight correction mode. I thing missing a trade is far more beneficial than initiating a trade anxiously. opportunities are always there only thing is that have to keep an eye on the movement and wait for the right time.
It is possible that even after the analysis trade can go into wrong direction but, it is far batter than playing blindly. Winning probability is more when we take chance by analyzing the things.

Conclusion

After attending this class FOMO and Trading psychology explained by the professor would definitely going to help me in my coming trades. We all understand these things but attending such informative and detailed class helps us to motivate and give us boost to follow the rules of trading.
Thank you professor @fendit for making us more informative and energetic!

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