Crypto Academy Week 12 : Homework Post for @fendit | Don't Get Lost in the Fuzz

Hello everyone. This is the first assignment post I'm doing. I'm going to submit the homework given by professor @fendit. So here we go.

I'm going to answer Question 'c' first because it's an interesting question.

I'm browsing twitter and I see this tweet by Elon musk where's he's talking about Bitcoin. What would I do

ANSWER

Ok so this is a perfect scenario of reverse psychology. Look. This guy, the most influential person on earth tweets about bitcoin. Bitcoin's value is meant to increase because of this because people will soar in investing in bitcoin.

I will not invest in bitcoin reading this tweet, instead I will invest in 'Dogecoin'.
One might think why? Why would I do this.
I will take this step because Elon musk also said previously that his favourite coin is dogecoin. He simply tweeted 'dogecoin' and the prices went skyrocketing and at the same time Elon musk invested in bitcoin.
So this is what I will do. When the whole world will be investing in Bitcoin due to this tweet I will invest in dogecoin because dogecoin's value is meant to fall because of this tweet.

Question 'A'

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 do?

Answer:

Honestly, I have been an emotional person in general as well as when it comes to trading. I definitely would have panicked before reading this lecture. I wouldn't have known what to do and then I would've taken advises from every person even if he has very little knowledge related to cryptocurrency. I mean who wouldn't if he/she is seeing their money going down the drain. I would've sold all the BTC I owned, in fear of further loss.

But after reading this lecture, I will not let emotions take control over me. I will not take random advices from any Tom dick or harry. I would play the game with patience. I will try to understand the trend. I will give it time and most importantly I will have faith. Now look, I will correlate these both things.

Sensibility and faith. I will work with these two things hand in hand. Sensibility will tell me to understand the trend better. If I notice there's a lot of fluctuation in the trend I will wait and let the prices go up again. Faith, that I have will give me mental peace that the prices will go up. Now if I only rely on my faith and the prices are continuously going down and the trend is not coming up anytime soon, I'll be an idiot. So I'll use my brain and and not be emotional and not let my feelings get a hold of me

Question '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.

Answer:

I used to be an impulsive trader. I let my emotions and my impulsive behaviour take control of me. I also had the FOMO. As soon as I saw some currency going up I used to blindly invest in it. And to be honest doing things blindly is not a good idea, be it anything.

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

Answer:

3 strategies in this lecture, I believe are meant for me xD.

The greed

Sometimes when a currency was giving me profit I just used to have a blind trust and greed in it. It was never enough for me. But as I learned greed is never an option. No matter what. Being greedy will end up bad. So I gave up this habit

Fear of missing out

Now this is the most important strategy for me. Whenever I used to sell in a good price I always used to think what if the moment I sell it the prices go up and I miss out on my further profit. Up till now I used to have this thought but not anymore. It's time for a change as its all about not getting lost in the fuzz

** Do not let your emotions control you**

As I've mentioned earlier. I used to be a slave of my emotions. As soon as I heard a rumor about a certain coin's price going up I had this impulse of investing in it. But now honestly I've learned through this lecture this is not the way.

Conclusion:

Learned a lot from professor's lecture. We will not necessarily make profit all the time. We should not let emotions or revenge trading take hold of us and it is also important to always set a stop loss.
This is all I have to say. Thank you @fendit for the class

This is my first assignment

Regards,
@huzaifanaveed