Crypto Academy Week 12 - Homework Post for @fendit

Hello Professor @fendit, I'm grateful for this opportunity to learn much from you. Trading involves a lot, and you need to have good strategies and a calm, patient and less quick to react temper. You've talked about the most important things to know and I'm fortunate I had the chance to be here. Many a times we all know which decisions are wrong from the right but then we still go for the wrong hopping it would be the right. There are times we just become ignorant and make wrong decisions before realizing we could have gone about something another way. I just hope after learning this, if any of us should find ourselves in trading situations that need us to take our time and make the right decisions we do not fail to put this into practice. I'm going to take time and answer the questions for your homework.

Hmm.. Imaging buying BTC at USDT 62K and it's now USDT 10K less than the price I bought it. I just got into crypto trading. I've learnt a lot from the #cryptoacadamey, a lot of important stuff everyone should know before getting into crypto trading if they want to be successful. If I hadn't taken part in these lessons I would have sold my BTC. First off, I didn't know how the market worked and how volatile it was. I invested USDT 62K and it's just going down and not coming up. I'd take whatever is left and use it for something else. My mind wouldn't be at ease especially after seeing it loose more than USDT 10K of it's value. I'd be watching the charts, waiting till it rises and I'd be regretting every minute it goes down knowing I could have reduced the loss the previous minute. And then finally when I see I've waited too long and it's still going down I'd just sell what's left.

Now that I know that cryptocurrencies are volatile and then I've learnt about forecasting and how to make better trading decisions I won't sell my BTC. How can I make an investment like this and run at a loss? Before investing I made sure I had a target and then I already know it could take more than a year to reach that target. I'd buy more and more BTC when it keeps dipping. With the knowledge I have now, the USDT 62K I invested is just 50% of the risk capital I decided to use for my investment. Me knowing it's risk capital won't bother me much because I know I have to take the risk if I want to make huge profits. And then I have also studied BTC for a while and then I know it will surly rise. Me seeing it has lost above 20% of it's initial value I'd invest 20% more from the remaining 50% of my risk capital. If it should fall again and again, I'd invest 20% more and the remaining 10% after.

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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.

Like I said I just got into trading and so I have little experience. But then my first trade was a mistake. A friend posted on his status how he had made a lot of profit from NFTART and then I just wanted to know how to make that much profit within less than a week. He bought the tokens a week before it skyrocketed with as low as $5. And then just two weeks after more than $600 profit and then I couldn't wait to get involved. The following day I rushed to his place so that he could teach me how to earn that amount of money within a short period. He told me to download some apps for the trades and then told me it was a risky business. I wouldn't listen. Later helped me purchase the coins and then I went home. On the day I purchased the coins it was still rising, the following day the coin ceased to rise. I was sad, it didn't bother me much because I invested just $10. If I had the knowledge I have now, me seeing the coin rise I won't buy now, I'd have waited for it to fall which I know it would and then buy. Before that I'd have also made my research about the company and how serious they are and whether the token really has potential to rise and it isn't just a scam.

The day after it went down, I went to another friend to ask about trades and how to make the right decisions, he didn't tell me much because he was busy but then I told him about NFTART. He made some research and taught me how to use twitter to check whether a coin wasn't a scam. He said to input the coin name and check the trends to see whether verified people with high reputation were talking about it. If they were, the probability of it being a scam is low. He then told me about a mistake he made when he started trading. According to him he saw binance when it was less than a dollar and he didn't buy and now it is worth $500+. He invested $50 instantly into NFTART. I was there with him for a while and the coin was still falling. He told me he was going to buy more, this time he didn't disclose the price because I didn't ask him. From this you can tell it's good to invest but before you do make your research.

I asked another friend about the mistakes he made and this is what he said.

He hasn't still gotten back to me but then from what I've learnt I understand him and how those mistakes came about and can also deduce the lessons he got from those mistakes.
You need money to make money. Capital is the most important factor when it comes to trading. Without it you can't execute any of your strategies. You should get your capital ready every time. And it should be risk capital, capital that won't hurt when lost. With crypto trading opportunities come and go. If the opportunity comes and you don't have the capital to take it you'd be hurt when you see others profiting knowing that you saw the opportunity but because of capital, you couldn't take it.
Jumping in on any call without doing any research and wanting to make money is all FOMO. Don't let fear of missing out let you make decisions in a haste. Opportunities do not cease to flow. It might take a while but another would surely come. I know for sure he learnt these lessons. I wished he had the time to give me the details I wanted.

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

Waiting for the right time is the best strategy to me. While you wait you can gather your capital and study the coins and the market. You also get to learn more about how to go about trading and prepare yourself. It pays to wait. Wait for the opportunity to raise it's head and strike when the time is right. Currently I'm doing that. I'm gathering my capital. I don't have enough knowledge also so I'm taking time to learn. When the time is right and I'm prepared for the trading world I wold start making my moves to a success with with trading.

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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.

Before reading this class I would have bought some BTC. This is with the hope that it would rise massively and then I'd make some profits. Now it depends. Me not having BTC already is a sign that this opportunity wasn't meant for me but then it's still possible to make profits from the rise. With the news given BTC would rush very high and would surely fall again. This is because those who posses coins already would start selling when they reach their target. If at the time the news was given the price of BTC is low I'd purchase hoping I can make some profit within a short period because of the rush. But then if it is high and I can predict it won't rise too much to make a lot of profit I'd wait for it to fall before I purchase.

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You need to be strategic with trading. Take advantage of the volatile nature of the cryptocurrencies and make the best out of it. Before you get into trading don't forget it's all about risk taking and having hope. Prepare yourself for the worst because anything could happen and make sure to do enough research so you don't get lost in the fuzz.