{Steemit Crypto Academy - Season 2, Week 4} Don't get lost in the fuzz - @fendit Lecture
Hello everyone, It is good to be a part of @fendit class again, I participated in the previous assignment and I really enjoyed myself. Today, after, going through the lecture on "Don't get lost in the fuzz" I will be willing to give the assignment a shot.
Trading is the buying and selling of assets, commodities, indexes stocks, raw materials, metals, forex, cryptocurrency, and any other item of value between two or more entities. While investors purchase a large volume and value of assets in the financial market for future gains, traders are known to buy and sell assets for sooner gains thereby making the market move at all times. Everybody is a trader one way or the other, there are people who actively trade in the market.
Every day, so many people want to become financial market traders, trading options, stocks, and cryptocurrency, but then not everyone understands the market, which leads to several mistakes that were listed in the post {Steemit Crypto Academy - Season 2, Week 4} Don't get lost in the fuzz - No te pierdas en la euforia.
Answer
To answer this, a friend of mine trades BTC to Nigerian Naira and bought BTC at the rate of $62k, he was really happy that the coin moved to $64k and then, the coin started to drop. When this happened, the first thing I helped him do was to check for Bitcoin Dominance (which is the percentage of BTC being held in the cryptocurrency market). I realize that the BTC.D was not up to 50% and was dropping which showed that so many people were getting out of BTC. We immediately went to the BTC/USDT chart and check to see if the Relative Strenght Index was High at 73.25 but the volume was reducing which were signs that the market was going to go down and immediately we had to convert to USDT before the market start to take another trend and we waited for a 4-hour candle stick to complete before making another decision.
As a trader, one thing I have learned is never to make a decision without a strategy, and never be emotional about the market. We waited for the market to touch it's low and when it started to pick up, we bought at $50k, checking that the dominance was increasing and other factors were favorable.
The decision I took in the past is the same I will still take now as I have learned to always stop losses. The market can go very down and as a trader, I am loyal to only the USDT or any other stable coin, other coins are a movement of supply and demand, as well as market sentiment.
B) 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 me if you got to know about someone else's experience.
One of the mistakes I made in trading is trading futures as a novice. I heard about futures trading in the early days of my trading activities so I decided to give it a try. I read a little on how traders traded contracts on the futures trading platform and I pick Bitmex futures as the testing ground. At the end of it, I lost every penny because I didn't understand how the market worked and was only interested in making a whole lot of money. One of the actions I took then that still shocks me to date is the fact that I used 75% leverage for the trades. I liquidated severally and I kept on gambling with the market until I almost went broke, then I decided to attend trading classes.
Which of the strategies discussed in this class you find the most useful for you? Why?
From the class, a lot of trading psychology was explained and I must confess that I enjoyed the entire class. One of the strategies I find very intriguing and useful is "Do not let your emotions control you". First, the market is a repetition of events and with this, the market becomes emotional as people want the same event to occur. Market prices are freely traded by the market and emotions are only going to push it up or down. Your concern should be the chart and not the noise. A lot of people has had FOMO because they heard a coin will go into 1000% at once and so they decided to get into the trade when the coin hits 700% so they do not miss out on the pump or rise but then, the coin starts to drop and they still hope that it will go back to its formal all-time high but then, it is gone.
screenshot frrm @fendit's post
Answer
There are two analyses that affect the movement of price in a market, it is the fundamental analysis and the technical analysis. With news like that of Elon musk, it is regarded as news from a powerful figure which will surely affect the price of the token just like if a negative speech from Donald Trump will bring the price down. Actually, I give room for fundamentals in trading and when I hear news like this, I do not often put all my funds as it can also be a way for big players to sell out their coins, so I will only put a fraction of my asset into it.
While trading, I will ensure I set a stop loss. You do not know what the market holds, so you need to be prepared to lose a little of your funds but not all (even when you are trading with funds you can lose). Never forget the Stop-Loss button and the stop loss price which you can comfortably exit the trade if things go wrong.
Sincerely, I would do the same thing both before and after reading through @fendit class.
Summary
I must be sincere that I enjoyed @fendit's class and I would be willing to be a part of the class in the future. Trading entails a lot of things from how to trade and avoid mistakes, to trading with a strategy. When these things are taken care off properly, then trading is set to begin.{
Thank you for being part of my lecture and completing the task!
My comments:
I seriously loved your work!! Nicely done!!
This class was really oriented towards people that are just beginners in trading and I was somehow afraid that the rest of the users that already have experience would find it boring or an annoying task to perform, but you mastered it, without a shadow of doubt!
Nice work, it was a pleasure for me to read it :)
Overall score:
9/10