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

It's indeed an awesome experience participating in the home work task by @fendit, I am actually new to the crypto world so to say and I have heard my coach say that trading cryptos  are for the elites which I believed to be true but with time i learnt to try doing what the elites do also...smiles......

screenshot of my deriv go fx app

I would start by sharing an experience had by my coach while trading forex which I believe could help us,while encouraging me and giving me tips on how trading goes he would tell me that there's higher risk in trading when you trade with your heart unstable or without confidence because for him at the initial stage of his journey into trading he tends to develop high blood pressure when there's a large upward or downward movement of a price in a short period of time that's what we know as spike,one of the risk there is that your health stands the chance of been affected and there's tendency you might still have some loss ...smiles.......

Make sure you feel confident before trading and don't rush. Of course, don't follow someone's advice blindly without getting to understand what you're doing

I am borrowing the above advice by @fendit because I was a victim,I started forex with a demo account and with the scalping method of trading where I trade for  a short time and closes with little profit and the enthusiasm as a beginner got me placing trades in rush even when I don't know what I was doing....smiles...It's funny right? and because of that I had losses several times until I began to do the needful,I really overtraded at some point  and that would lead me into answering the questions from the lesson;

question 1

• 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


Let me  start by saying I would not invest a money I am not willing to loose because that would make me not to panic believing  they could be better days  ahead, trading cryptos needs patience and courage,so If i bought BTC  a couple of days at a price of USDT 62K and I suddenly see the above situation going on, what I would do is to have patient knowing that the money i invested is not for an immediate need or want  or is regarded as a forgotten money, recently I bought few coins which some of them are new and  decreases as time goes by but I had to be courageous knowing I don't need the money i invested  for anything so I'm willing to wait for it to rise at any time,let me share this experience with us;



In 2011/2012 a friend of mine bought BTC at an affordable rate ,after some time the price increased and she sold off all she had thinking that was a slight escape from loss but later had to regret when btc price had a maximum   increase and I guess she never wanted or could not bear to loose all, probably the fear of missing out(FOMO) gripped her,

screenshot from my trust wallet of a new coin i bought

screenshot of another coin

question 2

• 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

Well...., I must say  that every trader are prone to mistakes and  it is part of learning because at some point for me I nearly lost the whole of my capital while trading with demo account, i Thank God there's a demo for someone like me..hahaha.... I don't know how I could have learn without demo and the mistakes I encountered there helped me alot that I became more careful on a real account,one of the mistakes I made while trading as a new crypto investor was using a high leverage on a demo account of 10,000EUR not until I learnt about leverage  and had to bring it down to ratio 1 is to 10( 1:10) after awhile i used 1:500 knowing that leverage especially when it's high is a two way something that can be detrimental to capital or helpful  aswell,



Another of it was doing a gambling work..smiles...it was way to funny while on this journey, I overtraded and at some point I  deviced a means Of trading better with so much courage and  confidence and that was when I had to set a plan for my trading which setting a stop loss was another thing I did ,I discovered that  trading without planning is like gambling and won't help my effort,





Strategy useful for me are:

• setting a stop loss: by this I have a plan and  will be limited to losses
  
  
  
• getting to know myself: just like my mentor would panic when the spike is high, I would not want such emotional tauma as an investor
  
  
  
• Not investing a money I'm not willing to loose: Me doing this would be detrimental to me and the business because I would be compelled to use the capital in a short period of time and I also stand the risk of endangering my welfare or wellbeing in the sense that the money could be needed for home needs or livelihood;
  
  
  
  
  
  
  
  
  

Question 3

• 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


Before the class

• Just as explained of a friend above who bought btc at an affordable price but sold off after a slight increase due to her fear of missing out(FOMO), for me I would do same, reason been that I couldn't detect the fate of the coin in time to come because anything can happen, volatility is certain ,I might not use the money i am not willing to loss due to some circumstances or because I'm in need of money and needed to trade so as to make huge or complete money for my project , just like in FX where I closes trade with little pip(price interest point)So not to take chances,
  
  
  
  Recently I had to set up a price alert on my coins at 1d(daily) interval precisely on my trust wallet, I had to do that because I want to monitor every slight increase in any coin that doesn't necessarily mean that I would sell it at any slight increase but I want just watch it or study the market movement per time,
  
  
  
  After the class
  
  
• The rise of Bitcoin from 2012 till date is a great regret to many who bought and sold off after a slight increase and that is a lesson to  learn from too,so after the class I have learnt not to use a money I'm willing to loose as that will make me endure for a long time while waiting for it to rise
  
  
  
• from the lessons I also  think there's alot on me to do which proper planning would be considered and that would lead me into setting a stop loss order to minimize losses,
  
   
  

Conclusion: As I said earlier,trading is for the elites,if you don't have the ability of taking risk you might loose it emotionally,risk takers never misses opportunities,digital money is volatile and needs courage and confidence to keep pressing forward,



N:B; what works for me might not work for the other so discover what works for you and abide by it so you wont get lost in the fuzz


Best regards to; @fendit,the class was worth it



Written; by @dlioness

For; @SteemitCryptoAcademy community