{Steemit Crypto Academy - Season 2, Week 4} Don't get lost in the fuzz By @janemorane

Hello Everyone!

Today I am making my homework task for professor @fendit, the lecture was very informative and now i will share what i have learned from the lecture.

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:

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 reaction to this situation before class.
Lets considered i am in the situation right now and I have a coin which bitcoin and I brought it when the price was 62k and now the price is going down suddenly, looking back to my old trading history my behavior would be to sell all the coins whatever price i am getting right now I have done this before because the price has gone very low and i am not thinking with my mind and but I am looking at other people and usually in this situation everyone sells out. I am not thinking about anything else and I am just blindly following the trend and now I have sold my BTC with a huge loss.

My strategy after attending this class.

After attending the class now my strategy will be different the first thing that I would do is I would not follow the crowd and I will separate myself from the crowd the first thing that I will do after that is I would go to the chat and start doing my technical analysis once I am done with that I will have an idea of what to do next, as we all know that whenever the market is in downtrend we have to sell now that's a fact but if you look at my situation I am in a very bad situation where I have already lost my huge amount of my capital if I sell on this point I will I have very big loss so that is not an option so I will have to find some other ways like I will go to sentimental analysis and see if there is some news around the Bitcoin at this moment as we all know that whenever a coin goes up there is a reason and if it comes down there is also a reason once we know that we will go back to to technical analysis and try to predict the price and of where the market will stop I mean when the Bitcoin will touch its low and start to rise back I will try to hold my coins and not take wrong decision in hurry.

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?

Trading is the most difficult things I have ever experienced because I had my very own experience. I had this experience two months ago, I had hold 1000 steem for a very long time and than suddenly 3 months ago when the rate of steem went high about 0.2 $ and i got really exciting and couldn't control my emotions and I though this is the right time to sell my steem and get some handsome profit but unfortunately when I had already sold my steem After two weeks I realized that the price is going high and already three times high than the price I had sold my steem.

Don't be Greedy!
I have now learned from my mistake that whenever the price of a coin went high we should not be greedy and should not fear of being missed out and analyze the proper trend and predict the price of the coin, as crypto is very volatile and we should understand the uptrend only than we can get profitable.

Know yourself!
I had learned a lot from my this loss as now I know that Whenever I face the same situation I will simply wait, analyze the market volume and will check out the overall people's reaction on this and If people are Buying or selling their assets, My experience teaches me to be patient and wait for the right time with knowing all the situations properly and than make a decision weather to hold or trade.

Here the Graph when I sell my steem and after that._{Screenshot from Coinmarket cap.}

1. Which of the strategies discussed in this class you find the most useful for you? Why?

Avoid FOMO

• Personally I found out from this lecture that - FOMO (Fear Of Missing Out) is more useful strategy for me because I have one personal experience which i have discussed in the above question and I made a big loss from fear of missing out and because I sell all my coins due to increase in price and than after I sold out my coins in greed to get more profit I missed the exact profit and the coins price raised at the price of about four times more than the price I had sold my steem.

Stop Revenge Trading

• Another thing I learned from the lecture is do not do revenge trading at any cost because when you lose your temper and decide something in anger and hurry you will keep on losing and will go into some very huge loss. We should always control our emotions and if we had some loss we should learn from the mistakes and should keep on searching and finding out the way we can recover and think patiently and not make wrong decisions by getting out of control.

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.

Well, Everyone related to the crypto world always know that whenever this kinds of situation comes what is going to happen now. and Hence I have learned a lot from this lecture so here are two ways of my reaction.

Before attending this Class.
Well i am working on crypto from long not that much experience but probably know the basics of trading and I know all about how to trade and what are the situations that comes in crypto trading. I would probably buy as much as I can because after this tweet I know that everyone is going mad and now the price of the coin will rush and will reach very high so it is a good chance to buy more and than wait for the turning phase of your profit.

After attending this Class.
Now after attending the class I am able and I come to know about stop loss which I had no idea before, Firstly I will set a stop loss of 10 % down price down as learned from professor @fendit lecture and it will help me not to loss all my money at once and because of my wrong decisions.
I have also learned from this class that we should not be greedy at this moment because anything can happen and not all the time the situation is same, so i will analyze the market and check if how many people are getting out of the market right now and are getting in the market and also will see the overall volume of the coin before this tweet and than will make the right decision patiently keeping in mind all the mistakes that i have done before this class in the past.

CONCLUSION

I have learned from this lecture that we should never be greedy and out of control in case of trading and also if we want to make profit we will have to wait for the right time and also set a stop loss to keep ourselves away from the complete loss.
I have also learned that we should never invest the money that we need and that is our risk capital, because of this we can lose all of our risk capital.Thanks to professor @fendit for this informative and amazing lecture!

Regards
@janemorane