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Hello everyone, welcome to my crypto academy season 2 week 4 home work post for prof @fendit, titled: "Don't get lost in the fuzz".
The crypto journey for every beginner is always a roller coaster experience of emotional highs and lows. Infact I can say that most beginners in crypto are controlled by their emotions. I was there before. Its this emotional attachment to trading that made me make a lot of mistakes. I always bought high and panic sold low. This kind of attitude made me lose a lot of money, because when the market begins to move I cant stand watching not being able to gain from the move so I fomo and most of the times it does not end well. I did not know the appropriate time to get in on a coin and the appropriate time to take profits.
I never even ever bordered to set stop losses on my trades and so when ever the market moves downward, it moves with me, both emotionally. I know that my experience above is the same for many newbies to the crypto space.
However big thanks to prof @fendit for this kind of lecture. It would go long way in turning myself and many other newbies in the crypto space to professional traders.
Without much ado, I want to jump straight into addressing the questions thrown by prof @fendit.
I would like to copy the picture she put in her post as to be able to properly paint the scenerio to those reading my post.

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The question comes from the above pictoral representation of a market scenario. Imagine yourself in the above represented market scenario:
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 the above situation is going on:

#Question1. 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.

WHAT I WOULD HAVE DONE BEFORE THIS LECTURE

Seeing such a scenerio is such scary one especially for a newbie. If I were to be in this kind of situation, the first thing for me to do is to rush towards news and crypto channels I am into. If they are saying buy the dip, then I would hold my position and wait to see if it can get back to the position I bought from or maybe close to it so as to minimize my loss. But if I keep seeing more dump incoming, I would quickly sell off and take it as a loss for me.

WHAT I WOULD DO PRESENTLY

Presently after going through this lecture I don't think my position would still be open, because I would have set my stop loss at 5% from my entry point, so my position would have been closed automatically at 58,900k this way my loss wont be much should incase the market dumps further than 54k. Then I would have to do some Technical Analysis in order to decide my next entry point, after am sure that the dump is over.

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#Question1.B) Share your own experience when it comes to making mistakes in trading:

1. 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.
2. Which of the strategies discussed in this class you find the most useful for you? Why?

MY PERSONAL TRADING EXPERIENCE

As I earlier stated, my personal trading experience have been an experience filled with emotional roller coasters and mistakes that have led to loss of so much money.

One that stands out to me so much was when the YF coin craze came up. I got into Newly launched $YFIB then at $32 and the next thing I saw was that it dumped hard. I had about 11 units of the coin, and I was in so much panic. I told myself let me just wait for the coin to reach where I bought from and I would immediately jump out. This took a couple of days to be achieved. I jumped out finally at $36 making a little profit, only for me to check the next morning and found that the coin was now worth $142 per unit. I felt so bad for not being a little bit patient. a little more patience would have paid off big time.

I also had another very terrible experience during the $Sushi FUD, which made $SUSHI to dive down so hard. I bought the coin at $8 only to sell the coin for less than a dollar. Later when the FUD was cleared $Sushi rose back to even $16, since then I have learnt not to sell quickly at a loss. In the crypto space nothing is a loss until you have sold.
I have made numerous of mistakes, but for the purpose of this post I would make do with the two I have shared.

USEFUL STRATEGIES FROM THIS LECTURE

Going through this lecture, one of the strategies that stands out to me is never to FOMO no matter what and also never to jump into a project because every other person is shilling it. I have learnt to always Do My Own Research before getting into any project.
Moreover, I have also learnt to always put stop loss at 5% to 10% from my entry point incase the trend turns bearish, I wont have to lose so much as when I did not set a stop loss and even when I lose in a trade I need not go on a revenge trading immediately to reclaim what I have lost as its okay sometimes to take your loss in good fate.
I also have learnt that I must not open positions everyday as sometimes the safest thing to do is not to trade at all.

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#Q1.C) Place yourself in the following situation:
You're browsing Twitter and you see this:

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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.

MY REACTION TO THE ABOVE SITUATION

The above situation is a fundamental as its called in the crypto space. My reaction to the above tweet depends on when I see the tweet. Its Elon Musk the second richest man in the world saying you can now buy Tesla with $BTC. This is an endorsement for bitcoin by the second richest man in the world, the market reaction is that people would quickly begin to buy bitcoin as was the case with $Doge coin since Elon Musk also endorses it for the purchase of Tesla. This would cause a huge Upward movement in the price of Bitcoin.
Now my reaction would be time based. If I saw the tweet few minutes after it was tweeted, I would rush to buy Bitcoin, but now that I have participated in this lecture, I would quickly check for the price of bitcoin.
if it has moved up significantly, then I wont FOMO as I have learnt from this lecture.

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Finally I must say a very big thanks to prof @fendit for this kind of lecture. It would go a long way in turning myself and many other newbies in the crypto space to professional traders.