Crypto Academy Week 12- Homework post for Professor @fendit

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Good day beautiful Steemians, welcome to my week 12 homework for Professor @fendit on: Don't get lost in the fuzz.

We have all been there, making one miserable mistake when we first started trading, funny sometimes we even took the market so personal thinking it was being harsh on us on a personal level, or also thinking we could some-way control it with our minds.

I am happy about this lecture given by professor @fendit since it helps us especially newbies know how to control ourselves while trading.

”Question 1. What would you have done before reading this class?”

I have usually been a very impulsive trader, always hoping to catch the immediate trend and cash-out before any downfalls. So looking at the chart in the question, my previous self would have sold out, although maybe at a lower price say $58,000 since I may be hoping for a bounce back with the idea that bitcoin is a great coin.

“Question 1b. What would you do now?”

Now I would have bought this coin but would have utilized my stop loss, say at support point $60,000. This would have saved me 3% of my bitcoin portfolio if I had sold at $58,000 as earlier mentioned.

”Question 2ai. What mistakes have you done when trading?”

It was just after my graduation from college, job hunting and learning how to trade CFD (Contract for Difference) although in Forex trading.
Then I had thought trading was a get rich quick scheme and had planned multiplying my money with it.

I started live trade with little experience and had put in about $500 in my CFD broker wallet. I was a very short term trader and over leveraged my positions.
I had planned tripling my $500 dollars to say $1500 in five minutes, worth the risk right? I was waiting for a buy signal and boom on the hour I entered.

I remember it like yesterday, it was sharp 16:00 when I took the trade, and at about 16:04 I was already $200 dollars short, closing at $300 dollars short. I felt sweat popping out of my pores. I looked for the “replay” button but this was real. I had learnt the hard way.

”Question 2aii. What did you learn from them”

From my experience I have learnt :

• Not to be too impulsive: Trading requires patience in studying the charts and knowing if it really gives an entry signal.
• To look at longer Time frames: I was studying very short time frames which usually involved a lot of noise. Traders look at a longer time frames so as to know the real trend of the market.

“Question 2b. Which of the strategies discussed in this class you find the most useful for you? Why?”

”Don’t let greed and fear take the worst of me”

I have learnt that trading is more professional than emotional and the market is not my enemy and neither is it my friend. It is controlled by a collection of all traders psychology on the real value of an item in the market, so trading should follow set down rules (technical, fundamental and sentimental) and guarding our hearts and minds not to be too greedy as to want plenty and not too scared getting too little.

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"Question 2ci. You see that whenever this kind of things happen, BTC prices rush. What would you have done before reading this class? "

As my former self, I would have had charges flowing through me, my hands vibrating to buy some bitcoins atleast it has now been proven that bitcoin is a coin of the future as a big automobile company Tesla using it as a means of exchange.
I would definitely have bought some bitcoin before 25th March, just impulsively on the social media hype.

”Question 2cii. What would you do now? Explain in detail if there's something you would do differently.”

Now I would ask myself three questions?

• Do I have enough capital to spare in investing in bitcoin? Buying great coins is great, but we shouldn’t run into debt trying to cash-out on great coins. I should always check if I have spare money to invest in bitcoin with the expected rush in price.
• Am I being too impulsive about this? Although there is an expected rush in price, I should also do some analysis to see if bitcoin has a good buy signal for this sentiment on the chart. Or wait till I see a buy signal and then join the trend.
• Am I scared of entering the market and why? Sometimes although all seems nice and great for market entry, we just have this personal fear, maybe from previous losses or jut not trusting our selves enough to have made good analysis. This makes us lose our of great opportunities.

Conclusion
Trading involves first mastering ones self, so many noise, news and speculations in the market it becomes like ranging waters. One should know how to pause, stay still and decipher where the trend is really going.

Thanks.

CC @fendit.