Steemit Crypto Academy Season 2 Week 4 Homework Task By @fadil1 : Don’t Get Lost In The Fuzz

Good day everyone,

Am so delighted to be part of this wonderful and interesting lecture and I will like to thank our noble professor @fendit for that and on the topic about ‘Don’t get lost in the fuzz’.I really learnt a lot and am kindly here to present my work.

Before I kick start, there are some key and important terms one need to know when investing in crypto currencies. Below are some of them I will explaining putting more light about.

STOP LOSS

As we all know coins can increase to a very high level and in that same state it can also decrease or run down to a very low price.And this usually happens when cryptocurrencies are disclosed into the market trade.

So therefore I will advise all investors to create price alert as to when you are losing you know.In case price decreases you know you are losing.

OVER TRADING

When trading in crypto currency there is something an investor needs to know before getting into this business which is technical analysis.So then you know the right time to buy a coin and the wrong time to buy a coin.I prefer you learning this cause it will help you any coin of your choice at the right time but if you don’t learn more about this and want to take someone else’s advice you end up buying a wrong coin at the wrong time.

And also making a lot of trade thinking you are going to get a lot of profit is not true, you are rather losing a lot. Let’s take this as an example that you went to buy a coin and suddenly the price of the coin increased but because you don’t know anything about technical analysis to go to buy.Then maybe in days time you hear news that the coin price has decreased then you go for another coin.With this buying of many coins you have to know that you are losing hugely.

REVENGE TRADING

Patience patience patience is always what I preach for and I will still advise all new and old investors to have patience.Without patience an investor will always get lost and never gain anything in crypto currency.Because you can buy a coin at a lower price and within weeks it won’t increase and because you have no patience you will be in a haste to maybe sell and buy another coin.After buying it might increase but since you have sold it already you will have to bear the consequences by losing.

Mostly is newcomers in trading who know nothing about it and when that happens they always think their capital will be funded back to them but unfortunately is not.

FOMO (Fear Of Missing Out)

In fact many new investors have some kind of fear in them in terms of price going down and losing their resources and that is not the case.So I will like to advise all new investors to have heart when investing and always hope and pray price will decrease cause in terms of crypto prices are not stable, it changes fro time to time.

The same thing applies to me when I first had my steem dollars,as at that time it was at a very high price so I had some fear in me that it might go low so I sold it and within some days it even became more higher that made me get what I wasn’t going to get.

Since I have now explain and make things clear about these key terms I will now move forward to present my work.

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 :

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.

From my research before this class and what I have learnt, what I will vividly do is that I will apply my technical analysis skills thereby analyzing and re analyzing the back up and resistance clear view before buying although it looks risky in some way. Taking good look of the chart it will really cause me some fear of missing out but as for me I have I heart very patient so will wait, hope and pray for sometime for price to increase before the time I will like to sell.

But for going through this weeks lecture, I now know and have some knowledge about stop loss.So I will move forward to set my alarm on the price I want then when it gets to that level it notifies me then I buy my coin.

B)Share your own experience when it comes to making mistake in trading:
What mistake 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?

The biggest mistake I have made before in trading was on the crypto currency bitcoin and that was last year.One of my close friends who I always go out with was telling me about this bitcoin I didn’t know so I asked him into details and got to know what all this bitcoin is about.So one day I had some money on me so I decided to call him and we purchased the bitcoin and we created an account and it was in my wallet. As at that time bitcoin was around $9,000 so I left it because I was advised that it rises and fall as times goes on. Within some weeks it increased from $9,000 to $9,600 and I was so happy and eager to sell because I thought I have gotten everything.I sold it and used the money and within some some months it increased and increased and today was we speak now bitcoin is traded in the market for $58,000.Imagine if I would have left it till now like I would have been a rich man.

I really learnt a big lesson I started doing something to earn money to go back into this business, this time around I was very ready I then bought a $200 bitcoin in some months time after regretting my first trade at the time it was sold at 16,000. I then left it till the starting of this year when it increased to 31,000 .I really made a lot of profit and was so exited.

I also one of my friends who also regretted and said he will never invest in any crypto coin. He is use in buying these gift cards and redeeming them to bitcoin. So because cards are sold to him every-time he don’t have any knowledge about it,whether bitcoin rises or goes down he buys it the same price. But still he didn’t because he had a lot of bitcoin so one day bitcoin increased to a higher price and he said he was to sell so I even advise him to take his time.He refused and went to the market unfortunately for him the time he sent the bitcoin to the trader the rate reduced to a lower level.This was really a bed day for him the money sent to him was the current actual price which made him lose a lot.

The useful strategy amongst all the strategies will be the avoidance of over trading.This is the one I think I value most.
Am saying this because when a lot of trades are not been made just for the rising and falling of bitcoin it really avoid one from losing when investing in crypto currency.

C)Place yourself in the following situation:You are 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 is something you would do differently.

Recently the same Elon Musk made a tweet about Dogecoin and currently as we speak now it is rising day in and day out.So me seeing his tweet before going through this lecture, I would have gone fast to invest into bitcoin with that mentality of it rushing without even looking at the positive and negative side.

But maybe after going through this lecture, I will get to know that having some knowledge about technical analysis is very important before getting into any crypto business.I will now sit watch and study things very carefully before going in for that business.

Although I know very well his tweet can increase the rate of bitcoin but it may be a for long time.In other to prevent me from losing I will go and analyze everything myself after the class.

CONCLUSION

I have really learnt a lot and I can say this lecture was so wonderful and interesting which has also made me know certain important things that I won’t mistaken about it anymore.

Thank you so much professor @fendit for that great lecture and May the good Lord be with us and bless us all.