Crypto Academy Week 12 | homework post for @fendit| don't get lost in the fuzz | by @loveth01.

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Thanks for lecturing us this week about overtrading, revenge trading, FOMO, and psychology related to trading.

Question A

What I will have done, before reading the lecture note :

According to the given chart, it reads that the price of the BTC has fallen so much after I bought BTc worth of USD 62k to USD 54,585.22k. This means that the value of the BTC I'm holding is very less and as a beginner, I'll feel very bad and disappointed, if I urgently need money at that time, I may think of selling the remaining ones I'm having to avoid loosing more money because seeing such a thing is discouraging. And if I think the market may not work in my favour, I may think of nothing but to stop trading crypto currency and find another digital trading or better still I invest in other digital assets like the NFTs.

what I will do now that I have attend your class:

I have been made to know that the unexpected can happen at an unexpected time and I'll need to be prepared for the worst if it happens. Having see the asset fall, I'll not rush in to the conclusion of not trading again, I'll hold on to the quantity of the BTC that I've bought and anticipate for the time when the price of the asset will go up. Or if I still have some money left with me, I'll use it to buy more BTCs because the eventuality of it rising is certain and when the price picks up, I'll have more BTCs and for that I'll be having BTCs with higher price; which literally means that my investment will start yielding positively and in a matter of short period, I'll have started making enough profit from my investment.

Question B

The experience of a trader (my friend)

My friend was that kind of person who jumps into anything without making a proper findings about whatever he wants to do. He has been hearing about crypto currency and trading Forex, he has heard about people who have made millions of dollars with a start of about hundred dollars. Then, he also wanted to try his luck; there was this money about a 50 thousand naira that was given to him for the payment of his house rent before it expires, he thought that if he could trade with that amount, before the due time comes, he would have become a millionaire but unfortunately for him his house rent was supposed to be paid in a month's time. Instead of him to make proper consultations with people who knew more about crypt currency, he decided to work on his own; he searched through the internet, thought he had known it all and that was how he started trading but unfortunately for him, he didn't know which of the crypto currency asset to buy because he didn't make enough findings about how crytocurrencies market is. He bought an asset and before he knew it, the price of the crypto currency he bought went down, before the price could rise up, he was sent packing because he was unable to recover back his investment. Apart from that, another mistake he made was selling the crypto currency asset that he has when the price was down, because he needed to raise back his investment and selling of his asset in such a time made him to even lose more. If he had known, he may not have used the money that would cost him a lot.

In a nutshell, my friend was unable to complete the payment of his house rent because he invensted everything he had in crypto currency without really having the in depth knowledge on how the crypto currency markets are operated; and now he has realised his mistakes and have corrected it, presently he is now a top trader in the cryptocurrency market.

From the short story of my friend I have learnt these :

1 . Before a person jumps into trading, he should have proper and in depth knowledge about the market and he should make sure he makes consultations with successful people that know how the market is run.
2 . Whoever wants to invest must make sure he doesn't invest with money he can't afford to lose.
3 . it may take several days, weeks, months or even years before the price of a fallen cryptocurrency asset to rise but with time, if he holds on with the amount he has, he will surely realise his profit no matter how long it may take, as far as he doesn't lose interest in the crypto market or even sell the little he has left.
4 . I also have the opportunity to learn that cryptocurrency market is volatile and anything can happen at any time to someone who doesn't know how the market is operated.

Question 2b

'Don't let greed and fear take the worst of you'

reason

I got scare easily seeing a coin I invested on falling, now I know it is one of the trick whales used to get coin from us that are new in the business. we now sell to them at a lower price.

Question C

What I will do before attending this class.

As a beginner in the crypto currency world, it means the price of BTC will soon go up because as many traders buy more Tesla with BTC, its value in the market will increase. So, me seeing a tweet like this, I'll jump in to the conclusion of buying more Tesla with the BTC I'm having so that before the value of Tesla increases I'll have acquired a lot of Tesla. Though, the price of a Tesla may not be as high as one may think of but as number people trading with it increases, and if I hold on to the ones I'll be having, a time will come when the Tesla's price will go up, it'll be of great benefit for my trading.

What I will do now after attending this class.

Due to the knowledge I have gain, I'll not rush into buying more Tesla than necessary, because I can't say what will happen to the value of Tesla in the years to come and even what is the assurance that the asset won't crash? If I buy more Tesla and its value cease to increase, it would be a big loss to me because I have invested a lot in it. Every investor wants to make profit; for such reasons, I'll patiently and enthusiastically follow the trend and see how the market goes.

In conclusion

Nobody has all the knowledge about trading always be ready to learn from all source.

Thanks to professor @fendit this is my homework post.