Crypto Academy ||Season 3 - week 5 ||Homework Submission post for Professor @allbert ||Psychology and Market Cycle ||by @kingworldline

Good Day...
Is my pleasure to have gone across this lecture which i have learnt and understood some principle behind psychology and market cycle, alot of honour and respect to my professor for this, and as well my fellow student.
Thanks and welcome to my home work asigned by professor @allbert.
Enjoy....

Link

Question one
1-Explain in your own words what FOMO is, wherein the cycle it occurs, and why. (crypto chart screenshot explanations needed).

The concept of the word FOMO was first described by Dr. Dan Herman in the year 2000 on his academic paper titled " The journal brand management".

However this Acronyms was coined down by Patrick McGinnis on his own opiniom which was published in 2004 in Amaerica magazine known as "The Harbus".

To start with and according to the lesson approach FOMO is an acronym that stands for "Fear Of Missing out". This is the psycolocgial concept adopted in human as regards to the market bullish where he feels jealous over the outcome or reward of previous and present investment growth of others which draws his attention to invest as well in order to key into the reward investment which may favour him a bit or back fire his investment.

Further more the meaning of this acronyms FOMO is fear to missout a very big opprtunity in the market trends, which is common issue encountered by the traders during their career in the market, although FOMO can affect any one because we are human with reasoning which actually depends on how we handle it.

Emotion is work force that drives FOMO, if not properly handled it can lead a traders to neglect his trading plans to exceed comfort level of risk, common emotion in FOMO includes:
•Greed
•Fear
•Jealosy
•Impatience
• Anxiety
•Excitement

Factors That Trigers FOMO In Trading

•Volatile markets.
•Big winning streaks.
•News and rumours.
•Repetitive losses.

wherein the cycle it occurs, and why. (crypto chart screenshot explanations needed).

•The Green Box: is for bullish trends
•The Yelllow Box: FOMO spoted
•The Red: The bearish trends
•The Blue: The Buy and hold

As the question demands, the FOMO always take place at the range of the YELLOW box according to the chart above and it can occure in the (Thrill or at Euphoria) as regards to the psychology and market circle. This unforeseen market trend of which a victims buys due to his psychology reasoning towards the bullish trend which triggered him to invest without knowing that the trend is at the peak or at the point to bearish, which can either lead to hold his asset for a very long time or to sell off at the bearish path which falls within the RED box in the chart above.

Question two
2-Explain in your own words what FUD is, wherein the cycle it occurs, and why. (crypto chart screenshot explanations needed)

FUD is an acronym "fear", uncertainty and doubt", this is the spread of fear, uncertainty and doubt which describe the fear of missing in negative trend.

Also FUD is a situation where by fear grabs your entire believe system to quit or to decline over a trend, the out come of FUD can cause a change in a trend, these can affect the price of coin to drop futher.
The fear of uncertainty and doubt inducing the idea being spread around as news or rumour is known as FUD.

Furthermore is situation where by you bought an asset at the positive price and sell it off when the price is below price of the asset you bought it due to fear, uncertainty and doubt which are known as FUD.

The reason behind the red spot circle of the bearish trend, is that point that FUD can b spoted according to the chart above and and it occures in the (capitulation) as regards to the psychology and market circle due to over relentless trend which trigars an investor to quit and pull of his asset due to the fact that the investment is spoted below the price he bought which trigars pull off.

QUESTION THREE
Choose two crypto-asset and through screenshots explain in which emotional phase of the cycle it is and why. Must be different phases

As regards to question three i will be using ETC/BTC respectively to explain the emional phase behind the chart which represents the market cycle.

For ETC/BTC For Phase One

As regards to to chart as the question three demands to explain the emotional phase cycle in chart for the phase one and phase two of it and the reasons for having such.

Based on the chart at the time i screenshoted it, base on psychology examination i spoted the trend to be at "Hope" base on the emotional phase circle at the bullish trend.

The reason behing the current point of the market trend at which i spoted it to be "Hope" was that the trend continue it fall from peak to a support level where market is almost equal to zero, which means when the market equivalent between the buyers and the sellers of which the next expectation is a positive trend which gives "Hope" after a long bearish trend.

Secondly i based on emotional believe it is clearly that all hope has being lost during the long bearish trend which affected ad deviate their mind set.

Second Phase

At this phase am using GAS/BTC as the question demands, the observed emotion on this second phase is the "Anxiety".

Anxiety is an unpleasant state of condition of metal nervouness which affect the psychological reasoning on a market, This trigger the traders to start selling there asset without considering some reasonable facts on how the market work, due to lost made already on the fall of bearish trend could force or force them to sell off their assets if the trend continue thiis way.

Some of the factors i consider before spoting it at that position, Of which i consideer the variation action on price, the phase of the trend, sentimant of the market, which all have a contrubution to offer over the trend on the chart.

QUESTION FOUR
Based on the analysis done in question 3, and the principles learned in class, make the purchase of 1 cryptocurrency in the correct market cycle. The minimum amount of 5USD (mandatory), add screenshots of the operation and the validated account.

The Above is my verified KUCOIN exchange account which i used to i used to purchase Chromia (CHR) cryptocurrency.

I will be using BTC to purchase Chromia (CHR)

On The process purchasing CHR, as you can see my account is empty

As you can see at the account in chromia CHR is now credited.

Am about selling my BTC

Considering my previous total asset and present one you can observe that some gain has been made after the trading.

Conclusion

psychology and market cycle has expose the sequential stages in market trading, which teaches us the basics, the psychology to used in fellow the market.

I was able to differenciate the the two basic phase in the psychology and market trading, and spot where they can be located in the cycle.

Also i was able to carry out a purchase to buy a crypto to examine what i have being thought in lecture.

The psychology and market trading is an eye opener to the world of trading

Special regards to
@allbert
Am @kingworldline
Thanks for reading