STEEMIT CRYPTO ACADEMY: SEASON 2 WEEK 4 BY @FENDIT :: DONT GET LOST IN THE FUZZ & COMMON MISTAKES MADE WHILE TRADING

Hello my fellow steemians, it's another week on steemit crypto academy and I have learned a lot from professor @fendit as she gave a lecture on "don't get lost in the fuzz".This is my answer to the task.

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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:

btcbusd graph showing significant dip

1) What would I have done before reading this class?

If I had previously purchased btc at 62k USDT, honestly I'll spend time studying the market for possible rise or dips. If I had come back to the market and seen the huge dip maybe from 62k usdt to around 48,49k USDT,with my small experience as a crypto trader,I wouldn't have sold the coin as I don't want to panic trade.

I'll have made almost 12k usdt loss ,but knowing it's bitcoin,it is bound to regain it's value after a couple weeks or months.So if I had been in this situation before reading this lecture, I'll have left the coin knowing BTC would regain it's value back.

2) What would I have done after reading the class?

After reading the class,the professor gave us some precautions that could be put in place to avoid heavy losses for example setting a stop loss.

So if I were to purchase btc at 62k usdt after I had read the class,based on my understanding on the professors explanation,I would have set a stop loss probably around the 57k mark since the BTC market is always open and it can dip or rise at any point in time.

stop loss on binance exchange

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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.

The mistake I have made during trading my has to be when I FOMO'd into buying the WIN token.I had initially spotted the coin rising fast.I had seen the coin around 0.0011 usdt and the the next morning it had increased by more than half it's worth.You can see the long candle stick in the graph below.

winusdt market graph

Waking up to see the coin going for 0.0025 usdt for one,I instantly entered the trade because I didn't want to miss out.I bought about 20usdt worth of win token.After a couple hours ,the token kept rising and I thought I had made a great decision.A few days later (not more than 3 days),I woke up again and checked the market,the token had dipped significantly and by that time I had lost about 9 usdt already and I sold it.I was lucky to have sold it only making a 9usdt loss because the token kept dipping and I would have lost more.

• The lesson I learnt from trading dangerously with the win token is to never jump into any trade when it's too late and also setting a stop loss.Even after buying at an high, I initially got some profit so if I had set a stop loss probably at 0.00275 usdt ,I'll have still made a little profit.

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

Of all the strategies discussed in the class,I think NEVER INVEST MONEY YOU'RE NOT WILLING TO LOSE is best for me.

Taking my mistake on the WIN token as an example,I entered the trade knowing I could lose it all,so trading with money I can afford to lose really works for me as no matter the outcome if the trade ,I won't be overly bothered.

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C) Place yourself in the following situation:You're browsing Twitter and you see this:

1)What would I have done in this situation before reading this lecture

If I see this news while browsing thought twitter.I would have immediately invested a lot of assets into bitcoin knowing fully well that news like this often boosts it's value.I probably would invest most of my money into it,even money I can't afford to lose.

2) What would I do in this situation after reading this lecture

I would still invest aa lot of assets into the bitcoin market but this time I'll only invest money I can afford to lose and I'll set a stop loss after buying so I won't run into great loss.

3) What would I do differently

Before reading this lecture I'll have jumped into the trade with way more money than i can afford to lose and I won't have set a stop loss ,so if the market had actually dipped instead of rising, I'll lose a lot of assets.

After reading this lecture,I know better and this time I'll only buy in what I can afford to lose.Regardless ,I'll still input a stop loss just in case.This way I wouldn't lose most of my assets.

CONCLUSION

As a crypto trader,it is best to find out the trading strategy that works for you.It is also important to set stop losses in your trades just in case of a dip in value ,you won't lose a large chunk of your assets.

Thank you professor @fendit for this great lecture lecture,I learnt a lot.

#fendit-s2week4 #cryptoacademy #cryptotrading #btc #nigeria #steemexclusive