Crypto Academy Season 2 Week 4 Homework Post for (@fendit) - Don't get lost in the fuzz by @ebiis

I am honoured to be writing again, welcome to my week 12 homework for professor @fendit, teaching Don't get lost in the fuzz.

My Aunt called me sometime last month telling me she heard bitcoin was the new deal, some motivational speaker must have bought her into the idea of buying cryptos as an investment. Now she was calling as I was her only nephew in the crypto business.

My advice would be the last trigger to her using her pension to buy the bitcoin as an assert.
I couldn’t advice her getting into it, not because it wasn’t a great coin, or that everyone wasn’t into it, but because of the mindset she had in going into it, the “Get in, cash out” band wagon mindset.

Trading crypto involves caution and good fundamental, technical and sentimental analysis, you really have to look before you leap.

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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:

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Before the class:
Okay looking at this exercise, previously I would have panicked and most likely sold out at $56k if not less, then swore never again to trade bitcoin.

After this class:
First looking at the chart, I really wouldn’t have bought at $62k price, because as we can see, the higher moving average had crossed the lower moving average signifying an impending down trend.

But assuming I bought, then I would have been careful as to buy using a stop limit order.

^{picture from Binance exchange app}
The stop limit order which is a preset stop loss option on the limit order gives traders a quick pullout of the market as soon as it starts going sideways.

B) Share your own experience when it comes to making mistakes in trading:

Biggest mistake I have made in trading to me was selling off my bitcoin at $4k, in 2017.

Still in the University and cryptocurrency was the big deal, the whole idea was a currency you could print with your miners and you could transfer without the need of the banks. I bought the idea and bought some bitcoin, although with no clear understanding that bitcoin could really grow exponentially after a while.

When the moral was down, I started feeling like it was a bad idea investing in a foreign currency, I sold my bitcoin to a friend, I cant even recall what I used the money for. Now the bitcoin has grown 1500% and I feel very bad selling at a very cheap price.

This is a good idea of FOMO, fear of selling too short and losing one in the long run. I was too ancious to sell the bitcoin that I sold out at $4K, and now I am struggling to buy one.

From my experience I have learned to look at the fundamental part of coins and the future implication. Bitcoin is a great coin, and was a potentially great coin then. That was the beginning of the future, but I sold mine.

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

From the class of professor @fendit, I think I have seen the getting to know your self best as a trading advice.

Get to know Oneself.

Getting to know oneself in trading is very important. This may seem an irrelevant topic when all one wants is profit, but trading without direction of what you can bear, risk or leverage you can make can make one forget himself while trading leading to losses and frustration.

Getting to know ones self also involves discipline. Disciplining yourself to now what to trade and when to trade it is another important part of getting to know yourself. Having a portfolio isn’t the problem, it is following them up, and trying to meet your predetermined profit target that differentiates baby traders from professionals.

I also love the Idea of trading money you can loose, because finally we do not control the market, so one should always trade coins he is ready to lose.

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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.

First I must say this is a very big news, more for crypto folks.
Bitcoin has long sought acceptance among companies, industries more manufacturing and fast moving consumer goods industries, so with Tesla starting out as one of the first to accept bitcoin, it is really a new horizon to the financial industry.

What will I do before this class

I would have bought more bitcoin, hoping for some breakout, maybe without even doing some real findings on its technical analysis.

What will I do after this class

First I will do a technical analysis on the bitcoin taking charts from the daily and weekly charts.

^{Picture from Binance exchange source}

On the daily chart as at march 24th, we see the BTC is making a head and shoulder or broader double top movement. We know the bitcoin is a great coin, so we shouldn’t expect it plunging down so easily, so I expect some consolidation on before either a good sign for a new long breakout or weakness in price as to a short breakout.

^{Picture from Binance exchange source}

On the weekly chart, we see it is already starting a consolidation around $56k, this shows that we should wait and hold coins if we have already but buying new coins should need more signals.

From my above analysis, well after the class I would have bought more bitcoin since Elon Musk had been a good market mover, and the technical anlaysis wasn’t really showing otherwise.

Conclusion

Trading is the future, so many entities and markets to trade on, trading has now become a professional occupation. Learning the art of trading and doing good analysis before buying a coin is ephemeral and necessary.
Never trade with emotions, never trade because social media just says so, self discipline is necessary.

CC
@steemitblog
@fendit