STEEM CRYPTO ACADEMY WEEK 12 - HOME WORK POST FOR @fendit – DON'T GET LOST IN THE FUZZ

Thank you so much professor @fendit for this wonderful lecture. So many people have made mistakes in one way or the other while trading and I'm not excluded. In short I'm a victim of some of the mistakes listed.

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.

For this particular question, it is a normal occurrence that we face everytime. Before reading this lesson, in short, when I started, I'm very sure that I would have rushed into selling so I don't incur more losses. But with the volatility of the Cryptocurrency market, it is always advised that traders hold on when the see prices sink. The fall in price does not mean the asset is going down permanently.

In short, after this lesson, my stop-loss would have been set and I would be waiting patiently for the BTC price to go up in order to sell at a profit and at the same time, having it at the back of my mind that if the price keeps declining, I will not incur more losses as a limit is being set already.

Trading with caution is key. That is why it is important to follow trends. Following trends will help you predict what will happen to the coin next after a fall.

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

MISTAKES FROM MY FRIEND'S EXPERIENCE

Well, the mistake that really got to me was not made by me but my friend. Few weeks ago, that was April 18 or thereabout when Bitcoin witnessed a 24hour fall, I received a voicenote from my friend who was practically crying. What made her cry was not because of the decline but because she sold her BTC at a very low rate because of panic.

There was no stop-loss in place and she wasn't patient enough due to fear of losing everything. She rushed into selling to recover some of her money.

In short, the mistakes committed were many. She invested even what she needed for sustainability and in a day, everything was going left. That fall caused heartache for so many people but those who were patient enough to wait were able to recover their funds.

The mistakes she made were basically;

1. Failure to set a stop-loss.
2. Investing more than she could afford to lose.
3. Panic and so on.

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

THE STRATEGIES THAT ARE BEST FOR ME

The first strategy that is best for me is not to invest all my capital or more than I can afford to lose.** Like in the case of my friend as shared above, she felt the heat because she invested all her money expecting to maximize profit but everything turned out to be contrary.

Some people do invest more than what they can afford to lose and Sue to the volatility of the market, losses may occur and they tend to lose out more.

Another strategy that is best for me is not to trade greedily. So many people will buy and luckily for them, the asset price will increase but they will not want to see because they want to multiply their gains. They forget that the price may change within a twinkle of an eye and the lose more.

REASONS DOR CHOOSING THESE STRATEGIES

The reason these two strategies are important is that price fall is inevitable. I need to constantly remind myself about that. These two strategies will help me not to invest everything I have or trade greedily in order not to lose everything.

All other strategies listed are actually very important and necessary to heed.

You're browsing Twitter and you see this:

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 WOULD BE MY REACTIONS BEFORE AND AFTER THIS LECTURE

Surfing Twitter and seeing a message from Elon musk about Bitcoin or any other cryptocurrency will be a huge pump for such cryptocurrency if it was a message such as the one shown in this lesson.

There will be more demand for BTC as it would be used for many purposes including the purchase of Tesla. Every investor would want to just buy at that point or hold the coins bought already in anticipation of the pump. This will also be my story as I will not be exempted from the step. Buy and hold and wait for the price pump.

After reading this lesson, the only different thing I'd do is not to be greedy if the pump eventually happens. I would sell at a reasonable profit in order to to end up losing everything.

If I'm to buy again after the round, I'd endeavor to set a stop-loss and watch the trend as it is moving in order not to incur more losses.

Thank you so much for having me around. I really appreciate.