CRYPTO ACADEMY WEEK 2- HOMEWORK POST FOR @fendit -DONT GET LOST IN THE FUZZ - SUBMITTED BY @ruthjoe

Hello steemians,

Its another week of crypto academy lectures and home work and am excited to be a part of this class today. Its was indeed an interesting topic. Thank you professor @fendit for the well delivered lectures, i sure learnt alot.
After reading the lectures am here to answer the questions asked after the class as homework.

A) 1) What i would have done before this class after seeing the situation below

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First i predicted a buy and then the trade is selling which means am at a loss, making my forecast wrong. So when i see this scenario i would close the trade at a loss to avoid further loss or more loss.
I will wait for a better position to buy.

A) 2) What i would do now after the class

Before taking any trade, either a buy or a sale, i should have done my technical analysis for the particular crypto currency i want to trade example BTC/USD to predict where price would be headed. The next thing to do is to know the point of interest ie where i want price to approach before taking the buy.
Next thing i would do is wait patiently for price to come to that region, i will not buy yet because i must stick to my rules of trading which is to allow price come to that region before i execute my order, my emotions are in check.
I know where to put my take profit and stop loss, so i will wait for price to come to that zone then i will put my buy order. If price goes to my direction its fine,but if it goes against me, it will hit on my stop loss. I will wait for another oportunity to buy BTC again.

B) 1) My experience when it comes to making mistakes in trading.

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My personal trading mistakes has given me a lot of experience. 2years ago precisely, when i first learnt about trading( crypto world and forex) i thought i could make millions just in a day.

• " Naive me" I began my journey into trading with a bad psychology, which made me blow my account several times,

• Secondly, i invested into trading money meant for a personal projects believing to make more profit but lost everything

• As a newbie i traded almost everyday.

• I kept using a big lots size when trading which was not proportional to my account size.

• I bought coins without a proper analysis hoping the price will rise but it ended up going down.
  I lost money to the point of almost giving up,

lessons i learnt from my personal trading experience

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• I learnt that having a bad psychology about trading is very bad and very costly because one of my bad psychology was that must make profit everyday. So i learnt that sometimes you lose and sometimes you gain or make profit.

• I learnt how not to trade everyday(overtrading)

• I learnt that i should never invest into trading money am not willing to lose or money meant for something else into trading with the mindset of doubling it or to make profit.

• I learnt that i should always use lots size proportional to my account size rather than using a large lot size,For example having a 100 USD account and using a big lot size or margin,to place trade can be a disaster sometimes, its like using one stone to kill 1000 birds which the probability to achieve is slim.

• I learnt to always do a proper analysis before entering the market to buy or sell.

• I learnt to always trade with strategies rather than impulse or emotions.

B) 2) The strategy i find the most useful for me and why

From the lecture given by professor @fendit on don't get lost in the fuzz , i find the most useful strategy for me as "Never invest money that you are not willing to lose"

why?

I find these the most useful strategy for me because, i have also made mistake of investing into trading money i wanted to use for a personal project and lost everything and couldn't meet up the deadline for the project.

So this strategy has opened my eyes to see that it is wrong for me to have done what i did, because investing money am not willing to lose will a make me end up in debt, sad and put pressure on me to recover the money so may lead me to trading all the time just to see if i can recover the money lost( which is wrong)

C) 1) what i would do before reading the class/ lecture when i see this below;

Source

I would rush straight into the market and buy bitcoin in large quantity.

C) 2) what i would do now

Firstly when i see the above on twitter, i know this is a fundamental news, and whenever a fundamental news is released, there is usually a rally in price with a large influx of investors in the market. I also know that Elon musk is an influencer in Bitcoin, he has a large share in bitcoin so when i see this above on twitter, it is wise for me to go and buy bitcoin and secure my profit instantly and go out of the market.

CONCLUSION

in life mistakes are bound to happen likewise in trading mistakes happen too especially when a person is new to the world. But learning from the mistakes and not given up is what matters the most. The world of trading is really an interesting one, sometimes you lose and sometimes you gain but the essential thing is to know the basic strategies and stick to it. I have had my own share of failures too.

Thank you for reading.
I will see you in the next class.

Regards
@steemitblog
@fendit