Steem cryptoacademy :- season 2 week 4:- home work post for professor@fendit:- don't get lost in the fuzz

Hey there everyone, this is @prakhar9675 here and this homework Post is against the Home work given by professor @fendit.

First of all I would like to thank professor for this amazing lecture full of information. When I read this lecture, I easily could relate with those things as I am also a normal person who does normal mistakes.

So after observing this lecture, I have learnt many things.

Source

So let's answer all the questions asked by professor:-

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.

So as per the problem, I have bought btc at 62k USD and now it's trending around 54585 USD. What would be my reaction to this?
Let's talk about it in two different circumstances:-

1. Before reading this lecture:- so before reading this post, the first thing that must be there was that I must be penic. And I might be lamenting for this loss.
And I would try to recover or minimize this risk.
To minimize, the risk or to recover, I might do two things:-

1. If I had money to invest, then I would have invested at this level so that whenever market goes up somehow, I would sell it and will earn some money to recover.
2. If I hadn't money to invest, then I would have sell this BTC at this level in fear of losing more money.

And in both cases I didn't chose safe side, as either I might get more profit or only penny in return.

2. After reading this post:- after reading this post, my first reaction will still be lament but I won't panic.
First of all I will just accept my loss as I would have accepted my profit. After that, I will observe the market by observing candlestick chart.
By observing the candlestick chart, I will try to conclude whether this dump is permanent of temporary by analysing the market volume. And then I might do any of the two things:-

1. If I will have more money to invest, I will try to analyse the market to see a perfect entry point and then I will invest. And while investing my money I will remember two things:- I am only investing that Money I am willing to lose and I am capable of losing Money and secondly I will ask someone, this is a professional move or I am doing it as revenge trading.
   If at any point, I get to know that I am doing it as a Revenge trading, I won't do it.

2. If I will not have any money to invest, then I will just observe the candlestick chart and will analysis the volume. And then I will try to figure out whether this dump is temporary or not.
   If I conclude that this is temporary, then I will just hold the BTC and won't do anything.
   And if I get to know that this might be a permanent dump and may be there for a longer period. Then I will wait for some days try to figure out a perfect exit point.

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.

I haven't done much trading but as being a normal person I have made mistakes in my short Span of trading.
My biggest mistake was
Fear of missing out(Don't remember price exactly but can't forget the lesson):- when steem was rising, and it reaches 50 INR, I sold most of my steem that I was holding for a long time. And all I had was some steem coin. And then steem just crossed 50 INR and reached around 90 INR. I thought I just missed a chance to sell my coins at a higher price.
And then after some time it's price dropped by some rupees. And then in fear of missing out I bought coins at a higher price. Although it's price was already high still I took that decision.

With the help of my friend @rishabh99946, I invested my much money into this. And waited. But the price of steem wasn't getting high and suddenly it's price dropped further. And being impatience, I sold those coin somewhere around 72 rupees. And had loss. After that steem price touched 100 INR mark.

^{photo from my binance of steem price candlestick chart}

So in this whole situation I did two mistake,

1. I was fear of missing out to gain profit at higher price.
2. I became impatience and sold those coins without holding them for a longer period.

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

Although every strategy discussed In this lecture is amazing yet if you talk about my favorite, I will go for Do not let your emotions control you,and Revenge trading

Reasons to find it useful:-

1. Do not let your emotions control you:- as we know that this cryto world is highly volatile and price of every coin goes up and down every second and in a single day, it's price can touch sky and again dump to the ground.
So when someone sees that any perticular coin is touching sky and then he is influenced by fear of missing out and then he invests in a coin that is already very high.
As this happens with most of the people so along with those, I can also relate to this as I suffered loss once due to this(as I have discussed) thus it is my favourite.

2. Revenge trading:- As cryto world is volatile, one may gain profit and other may suffer loss. And one who suffers, many times try to get more and more profit in a short span of time. And in this situation, he invests money in many coin and may suffer loss further.
As this is main reason behind loss of my friend @rishabh99946 while trading so i will try to avoid it and this is the reason I find it useful.

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 Musk is so powerful in this social media platforms that by tweeting just a tweet, he influence the value of cryptocurrency.
And we also see this happening. When Elon musk first tweeted about dogecoin it's value was around 50 paisa and from then its now trending around 50 rupee and it's price is hiked around 100 times. And in case of bitcoin too, we see this becoming real.

So before reading this post I would have invested my whole investment in bitcoin and would have waited for profit.

After reading this post I will first observe this and won't invest my whole saving in it. Instead of it I will invest only that much money which I can afford to lose.
And also I won't invest only on emotions that Elon Musk has tweeted about it, it will certainly rise.
Instead of this, I will observe that this is actually happening or not. And won't do overtrading.

conclusion

From this whole lecture, I can conclude that don't let your personal emotion come into your way of investment. Don't invest whole of your money just invest that much which you can afford to lose.
And also do not do overtrading. Its always not good.

Cc
@fendit
@sapwood
@steemcurator01
@steemcurator02