Crypto Academy Week 12 : Homework Post for [ @fendit ] Don't Get Lost in the Fuzz.

Hello friend's, hope you are all doing well. Today i am writing homework task for professor @fendit , that is about common mistakes we do while trading and trading strategies.

Volatility in terms of price is an inherent trait of cryptocurrencies . We have been put in a situation where a significant price drop has occured in BTC. Actually i am new to crypto world but i have been trying to gain some knowledge about crypto trading for last 6 months and a major credit of preventing me from doing any blunder goes to cryptoacademy professors. Before 3 months ( not now) , i would have done panic selling to prevent myself from further losses. But now i won't sell my position, rather i will wait. But there is something that i would do differently not only now but from now onward . All credit goes to professor @fendit. Thanks to professor for teaching me following :

It is not like that rhe concept of STOP LOSS has not been discussed earlier but professor's lecture put us in a real life scenario so as to realise its importance. Although i have already written about STOPLOSS in one of my homework posts but have not used it. But now i reallse its importance by putting myself in above scenario.

Steemit marks my entry point to the world of cryptos. So when i joined steemit, after few months of blogging, i gathered some steem and wanted to convert it into fiat via BTC. At that time, my knowledge about trading was so inadequate that, i never bothered to check price of steem or BTC. I used to convert SBD to steem without looking for price of either and than transfer steem to Binance and than Swap it for BTC, without looking for price of either there too. Than i used to transfer BTC to Wazirx and sell it for INR. So i was vulnerable to committing multiple mistakes during a single trade. I may have been doing one, two or three mistakes among the following during a single trade and the mistakes that i am talking about are, selling steem at low and buying BTC at hugh and than again selling BTC at low. When i compare my initial trading transaction with my current trading skills and experience ( although i am still new in this field) , i realized that i was having 5 fold loss during my initial days of trading for the same amount and same trading pair after nullifying the price hike of steem.

As of now, i am still doing mistakes. I have recently purchased a token WRX worth 30$ (probably i fall prey of FOMO) and within next few days price dropped to 24$, making a total loss of about 18% in few days because i had to sell WRX for some reason. Had i placed stoploss at 10% , i would have saved 8% loss.

I learned that don't indulge in trading without prior adequate knowledge and research of subject. I would have avoided above losses by being patient and waited for proper time to sell. Also i learned to do strategic selling instead of panic selling.

All strategies discussed by professor are outstanding and we all had gone through some of these at some point in our trading career. Few strangies that i can relate to are :

Don't let greed and fear take the worst of you. As a newbie to crypto trading , when we see prices of any coin that we hold, going up, we want it to rise more and more, so that we can gain more and more profit At times market shows so wild swings that on checking again, prices are deep down and that too even below purchasing price. So as new entrants, we should not greed to earn huge bucks in one go, instead we should satisfy ourselves with small profits until we become technically sound.

Second aspect that we fall prey to is " Fear factor". When we see price of asset that we hold falling, we tend to square off because of fear of losing invested sum. Instead we should be patient and wait for price to rise again and than do strategic selling.

Do not let your emotions control you. Emotions of newbies arouse on hearing about price hike of cryptos. I have myself experienced this thing in 2017. When one guy in our locality got a new car by selling BTC that he was holding. I got excited to hear about it. But later i was somehow able to quench it. Most of the times, we go for buy in such circumstances without thorough research, even with momey that we cannot afford to lose. That often lands us in trouble. So we should not flow with the flow, instead we should learn to swim against waves to succeed.

Before attending this class, I think I would have acted indifferently. I would have ignored this news. But now after attending this class, i will go for buying Bitcoin with certain improvements than earlier like:

• i won't fall prey of FOMO. I would wait for price to stop entering escalating phase. Once sure that, it is push by Tesla, i would go for buy. At the same time, i would place stoploss order too to avoid any significant loss at the time of price correction.

• I would only invest affordable amount. Although this news is a clue towards price hike, still i after attending this class realised that, amount spent must be only that much, which one is willing to lose.

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Thank you