Steemit Crypto Academy - Season 2, Week 4 - Don't get lost in the fuzz || Lecture by @fendit and written by @oluwatobiloba

Hey everyone, it is another crypto academy week, and as usual, I am going to participating in the assignment. Today, I attended a class by @fendit "Don't get lost in the fuzz" which touched the integral basics of trading. After reading, I learned about the common mistakes people make in trading and how to overcome it, also, I learnt the psychology of trading. After the class, I will be writing to answer the questions in the assignment.

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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.

First, before this, I was not really a trading person so I can tell what I would do before and after the lecture. I believe in the hodl your coin and I must confess that this told on me in 2018 as I held tight to so many coins such as STEEM and EOS with passion. At the deep of the bear in 2018, i wish I had sold my steem when it was high and bought it again when it was low, I wished I had sold my EOS to purchase more STEEM but emotions and the preaching of holding to your coins in the deep made me hold up to my coins very hard. I had reasons for keeping my STEEM but I didn't have much need for holding EOS as I wasn't active on the EOS ecosystem.

With that said, you should know that before the class, I was going to hold on tight to BTC even if it goes back to $3k but after the class, I have a different view. I should be able to mitigate losses and reduce risks and so I should learn how to stop loss. With this, If i buy a coin $62K, I will be very willing to stop loss when the price drops 8% and I will wait for it to drop further before buying so as to increase the number of tokens I have which will increase my value if there is a rise again. For example, If I bought 1BTC at $62K, and the price starts to drop, I will be willing to sell when the price drops 8% ($57,040) and will wait for it to drop to a reasonable limit until there is a visible support for it. I would have bought at $52k when BTC started to show sign rise. At this price I would be buying 1.096923BTC which would increase the number of BTC I hold by 0.096923BTC and if the price increases back to 62k, I will be having $68009.226, an additional $8k to the total value of coin held.

2

B) 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.

One of the mistakes I made with trading was Buying EOS at its peak because of FOMO. Everyone was selling the gospel that EOS was going to hit $50 or even $100. I bought at $22 and was happy when it started to increase only for it to reach $22.89and start to drop until it reached $2. I held on to the believe that it would rise to $50 in months but the bear market showed it was no joke and even in the bull currently, EOS hasn't reached $8

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

Stop-Loss

Currently, I will not allow the same thing repeat itself as I will be willing to stop loss once the price is going below a price i can hold. I will be willing to use the stop-loss at an average of 10% below the buying price.

Never FOMO

Not doing a proper research before purchasing a coin is something i will not do again. I will not purchase a coin because people say it will X25, instead, I will be willing to do my research before purchasing.

3

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.

Elon has been in the light for a while now and he has been a voice in the crypto world but then, Before this class, I have always been careful about buying coins people recommend due to my EOS experience but after this class, I will be willing to study the movement of the coin after the new as well as read technical analysis of teh coin while setting a stop-loss so I do not lose my money like I need in the past.

Final Note

Thanks to @fendit, I must say that I learned a lot from the class, you do not know how much you have impacted me with this class, Thanks a lot. I hope to participate more and learn more in the future.