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

The lecture propagates the horizon of knowledge that I should have as a trader inorder to stop incessant losses due to not well planned thinking and others that could be properly handled with trading dexterity shown in the lesson scheme

The first question shows an instance of a trader who buys 62 thousand USDT worth of Bitcoin and has a bearish movement after the transaction to around 55 thousand USDT worth of it

What I would have done before the class

Before this class, I have some knowledge of altcoins and I have understood bitcoin to be a volatile coin . Therefore, by buying the coin I should have kept a provision in my heart for risk and know that it's fall could be very volatile and it's rising same to that effect, I would hodl the crypto assets because I know somehow that there would be a follow up bullish movement too probably by faith as I always assume and this is because I have learnt a lot from panic sales which costed me a lot

What I will do after the class

After this class , the response to such a trade movement would be more strategic although the trade movements would almost be the same but here are a few things I would do

Set a stop loss
After going through the lecture, rather just hoping on patience, I will apply the wisdom learnt from the lecture, I would set a stop loss before the trade

To be honest I never paid attention to the stop loss of a thing but now I have learnt and won't neglect it for any reason

Probably it may not save me from an entire loss but it will sure not make me die of high blood pressure quick, common sense as they always say is not common I wish I actually got acquainted with the stop loss, many mistakes would have been averted

N/B the difference between the two times is the stop loss presence, a presence I would hold for ever

A Mistake I will never forget

One remarkable mistake I have made in trading could be related to one trade I did last year, I bought Bitcoin after it was hyped by my cousin who we call the crypto prophet who bought and made waves in returns and so I did so without market inquiries and checks and proper planning and it was meant to be a short term trading since the invested money was a school fees meant for one month before payment of school fees would begin

I bought it with my school inorder to make quick profit when market just went very volatile and in a day I had almost half of the money dropped. This was a night mare situation since I didnt plan well but I think this is past gone since nothing of such could happen again with my knowledge and awareness that you don't invest what you are not ready to lose.

What I learnt from my mistake

1. no matter how hyped a coin is, do your personal research
2. do not invest money you are not ready to lose
3. as mentioned earlier, an idea of stop loss would have reduced my tears a little

The strategy I find most useful

source

Every good trader should be of a truth grateful for this type of lesson since a major factor affecting trade processes are revenge tradings .
We were taught in aversion to risks that risks can be managed but not totally averted since most good traders are made by risks and experiences.

Instead Revenge tradings are done by them making them lose more in the process for eg a volatile coin like Bitcoin might drop at the purchase of it by a trader and the trader immediately trades to buy and instead it keeps going down and more losses incurred in the process
Therefore the greatest strategy understandably is Don't let greed and fear take the worst of you

Definitely there will be good days, and of course bad days but a sound and focused mind will always prevail

What would my reaction look like when I see this tweet

C.) The situation mentioned below of an update of Elon Musk mentioning the possibility of anyone to buy a Tesla with Bitcoin would surely make the Bitcoin market bullish and

Screenshot from Twitter

What I will do before the lecture

Before the lesson I would originally rush into buying more of Bitcoins to make sure I'm carried along the trend to make larger profits since a major rich personality is promoting the Bitcoin market buying giving accent to buying his products with Bitcoin

What I will do after the lecture

But now, I will definitely buy but will consider a few actions

1. First thing I Consider is time of the update and the market structure at that moment. If this is a post of about minutes ago , I would check the market structure of Bitcoin . If it is too bullish at the moment and take some positions ,

2. I would buy with a very close stop loss but if it is just a bit stable then I would buy with a bit extreme stop loss since I know the trends of the market would lift the Bitcoin prices very high

3. I will invest only what I am willing to lose

Conclusion;
Honestly this lecture is an eye opener and I feel it's something every trader will have to put into consideration, most times beyond making profits there are prerequisites that should be entertained and the professor @fendit taught us a good number of them

Cc
@fendit
@steemitblog
@steemcurator01
@steemcurator02