Crypto Academy Week 12 Homework Post for Professor @fendit

Good evening readers and all friends of Steemit. Today I will attend a class mentored by professor @fendit. It's great to be able to join this class and this is my first participation in this class.

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After reading the learning posts that the professor has shared, I realized that the theme this time is very important for us when we are in a very volatile crypto market. As feedback on the learning that has been given, I have to complete the homework that has been given by the professor. Here is my homework.

QUESTION 1

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.

My Answer for Question 1

If this happens, of course I will not panic and I will wait until the price returns to 62K USDT. Now I am used to such conditions because I have traded a lot and the ups and downs of crypto prices in the market are commonplace. It takes patience and strong analysis to fight in the market. But please note that I will not buy it for 62K USDT as it is a bad time and carries a higher risk from the chart.

I am always careful in the market. Before actually making a trade, I always observe and consider it realistically. In trading, I prefer to take technical analysis and fundamental analysis into consideration. A fundamentally good asset will definitely get a lot of support in the market and the risk of loss is definitely lower. In addition, it is also necessary to carry out technical analysis by looking at current market trends and observing current price charts.

As a trader, you must always pay attention to the support zone and resistance zone based on the patterns on the chart because it takes the right time to enter the market. Support zone and resistance zone are benchmarks and assumptions made only in broad outline. Ideally, you buy an asset during the support zone and sell it during the resistance zone. When trading you don't need to be greedy and you only need to focus on the technical analysis that you have made before because greed might lose your chances of making a profit.

Based on market dynamics that often occur, when the chart forms a support zone pattern, the next possibility is that the price will rise until it reaches the resistance zone. When it reaches the resistance zone, you should sell it because the possibility that what will happen next is that the price will fall and form a support zone again. When there is another support zone, then you can buy it again and sell it again when it reaches the next resistance zone. And so on.

QUESTION 2

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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 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?

My Answer for Question 2

The first time I traded, I lost as much as $ 270 out of the total $ 500 capital I invested and I have learned many things from this incident because experience is the best teacher. The good news is, I've managed to make up for that loss by making trades that are more realistic, more patient and more focused.

This incident happened about 3 months ago and at that time I made some mistakes. First, I only invested all of my capital in only one asset, namely HIVE. Of course that is a bad thing, because investing in only one asset can provide a greater risk of loss and should invest at least 4-5 assets.

Second, I choose investment assets without doing technical analysis and fundamental analysis. I chose HIVE based solely on discussion chats conducted by a number of users in the chat room. At that time, HIVE became a trending topic that was being discussed by users in chat rooms. Of course this is a bad judgment and I have made a mistake because I did not determine it based on analysis.

Third, at that time I didn't understand about the price chart and it turned out that I had bought HIVE during the resistance zone because I thought that the price would get higher more instantly. But what happened is the opposite, the price of HIVE has actually decreased. Turns out that is a very wrong thought because the resistance zone is the right time to sell and not to buy.

Fourth, then I tried to hold on to HIVE for a week and hoped the price would go up again. It turned out that the price was getting lower and I started to be afraid of losing more. Finally I decided to sell it at a much lower price so that I lost as much as $ 270. Then two weeks later I saw that the price of HIVE was going up again and even surpassed the previous resistance price. This opened my eyes, that I must be more patient in trading because patience is one of the keys.

Fifth, at that time I didn't know about stop loss so I didn't use this feature and even now I haven't used this feature. After reading the post given by the professor, I began to realize the importance of this feature and this feature will be a very useful strategy for me in the future.

Stop loss is a great strategy for stop losses because nobody wants to lose in the market and I will try to use this feature tomorrow. Ideally, the stop loss is set 5% below the support zone and if the support zone price breaks then you will only lose 5%. But imagine if you don't use a stop loss, then you will experience even greater potential losses. This is the best way to save your capital.

QUESTION 3

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.

My Answer for Question 3

I have found that such a thing can build public opinion quickly and can create a FOMO effect because it is published by a well-known influencer like Elon Mask. Things like this are classified as sentimental analyzes that need to be considered because several cases like this have been shown to be able to increase the price of these assets even though in fact sentimental analysis is a poor analysis to be applied continuously. Two of the most famous examples are the Bitcoin and Dogecoin cases campaigned by Elon Mask on his twitter.

If the tweet was made at 4:02 a.m and I saw that the tweet was late at 5:30 a.m then I would immediately look at the chart and observe whether a support zone or resistance zone was happening. If the price is around the support zone, then I will buy it and hope that a few moments later there will be a significant spike in prices. However, if the asset is already in the resistance zone, then I will not buy it because it means I have missed the bus. Conditions like this can create sudden panic in the market due to very high volatility and of course you will have a higher risk if you decide to join in the middle of the journey because it is not the right time for you to enter the market.

CONCLUSION

The market is always volatile and you can use it to trade. But no one wants to lose in the market. Therefore, you need to be a realistic person with good psychology and always be careful in the market. Make sure that you have done various analyzes and various considerations before deciding to enter the market because it takes the right time to enter the market. Also keep in mind that you don't need to trade excessively and don't be a greedy person. You also need to apply stop losses in your trades to stop losses and prevent bigger losses.