SteemitCryptoAcademy Week 12: Homework Post for Crypto professor @fendit | Don't get lost in the fuzz

Hello, everyone. It's a pleasure to learn from professor @fendit in this academy. This week’s lesson is the most simplified lesson I have come across so far and I must applaud our professor for a job well done!

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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
It can be really frustrating seeing your asset lose its value and worth. I have come to understand in my short time of dealing with cryptocurrency that it requires patience and I also go by the adage which says that “whatever goes up must surely come down and vice versa” although this does not necessarily apply in all markets. But honestly, if I bought BTC at USDT 64K and after a couple of days, the price begins to drop drastically, all I will do is be patient and if I am too scared, I will set my stop loss at USDT 50K. One of my principles is that I’ll rather sell at the price I bought the coin that lose money out of fear. As it has been rightly stated in the lesson, I do not let fear take the best of me. As a newbie trader, I understand the volatility of the crypto market and this decision is what I have taken in the past and what I will still take even after reading this lecture.

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.

This particular trading mistake is one I still regret to date. Sometime in January this year, I bought DOGECOIN when it was sold for 24Nigerian Naira, and then after a month (in February) DOGECOIN began to decrease drastically. Now, this was my first trading and there were still uncertainties about the coin so due to fear, I sold the coin at a loss price of 16Nigerian Naira. I was so scared of losing my entire money. And then two months later, DOGECOIN fired up greatly and increased over 250%. I would have made a lot of profit if I was patient enough to wait.
What this experience taught me was good patience in the crypto market, I have learned not to let fear or my emotions take the best of me and I use this strategy in trading now.

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

All the strategies listed in the class are really useful but two interest me the most; firstly, never invest money you aren’t willing to lose. A lot of us are in a hurry to invest and make great profits out of trading cryptocurrencies that we go the extra mile of investing all our money and forgetting that great loss can also be made. I have learned this first hand and thereafter, I told myself that whatever money I know I would be using in the nearest future or I cannot stand losing, I do not invest. So here is what I do, I invest my spare money into the market so if there is a loss, I won’t be left stranded or broke. Another strategy is not to let your emotions get the best of you. Last month, I friend told me about a certain coin and I was willing to invest all my spare money into it only for me to realize that it is a shit coin without a clear-cut path. This lesson stands as a reminder that I should not just be moved into making investments because someone recommended 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.

As rightly said, I will buy BTC immediately after this announcement is made especially if the price has not increased yet because making some profits won't be a bad idea. But since I am also cautious and understand that anything can happen in the cryptomarket, I will also set my stop loss so that if the price drops, I won’t be having a great loss. You know how we say that trading cryptocurrencies comes with a lot of uncertainties and is about profits and losses although we must endeavor to make more gains than losses.

Conclusion

I really loved this week’s lecture. I love how simplified everything was and how it gives an opportunity for newbie traders to comprehend.