Crypto Academy Week 12 - Homework Post for @Fendit

Very interesting subject, I haven't ever traded really, I have just sold what I have HODLed when I have had some real need of money. So here are my Homework answers.

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:

This is quite a dark scenario, and it certainly makes you think, do I just hold the Bitcoin and hope for a rebound or do I sell at a loss and lick my wounds. Personally what I would do is wait for a few days and see if the price goes back up and I either lose less than selling at this moment, come out even or why not, make a small profit. Of course I would have to use a stop loss figure to not lose out much more than what I am already losing.I do follow the Bitcoin market and dips like this are not uncommon, but Bitcoin seems to be on a bullish trend so I expect it will sooner than later go up again. Of course since we are supposed to use only money that is extra and we can afford to lose, giving Bitcoin a chance is, I think the reasonable thing to do.

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.

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

1- Basically I have not traded per se, I have sold coins when I have had need of money, still this has been like a trading experience, I must say things have not been as good as they could have been with a little more know how. I always seem to sell when prices dip, Of course I sell because I need the money so you have to take the money lost due to low prices was more an emergency than a complete lack of knowledge. Still sometimes I feel I could have done much better.

2- If I am going to get into the trading business I guess all the strategies are good, the worst one is panic buying or selling because a panicked mind just doesn't work well, but the stop loss is a great strategy too, as it limits what you can lose.

C) Place yourself in the following situation:
You're 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's something you would do differently.

Yes, prices rush, mostly because of FOMO, fear of missing out. We humans do have a herd mentality and when someone like Elon Musk spells out something we are bound to follow. Now what I would do, is certainly try to make a profit out of this rush, set a stop loss figure, and set a reasonable target before selling my Bitcoin, perhaps a ten percent gain. The way the crypto market moves these days, there will be a lot of anouncements like this one and we have to take advantage of all of them, our goal is to profit on each transaction, not to become overnight millionaires.

Now having seen this I must say that of course, the bigger your investment the bigger profit you will make, which is why the rich get richer they have more spare money for crypto. Still using the strategies set out in this course and keeping discipline anyone can get to make nice profits in the Crypto world.

Tagging:
@fendit