This week, the professor spoke about the biggest mistakes in trading. He showed us in detail how to get rid of mistakes.

It took me a long time to realize that cryptocurrency trading is not the same as the stock trading dynamics in traditional stock markets. It takes at least 4 years to gain enough experience in crypto money trading. As is known, there are bear and bull periods in crypto currencies. The beginning and the end of the bear period, the beginning and the end of the bull market take an average of 4 years.

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A good trader should understand the dynamics in the bear and bull markets. As the general trend in the bull market is bullish, a trader making good gains in the bull market may lose all of its gains in the bear market. He may also suffer other losses. He can sell his house, his car and lose all his assets. A trader who starts trading cryptocurrencies in the bull market should investigate what is happening in the bear market and make his moves accordingly. Also, mistakes mentioned by the professor in the course article should be avoided.

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.

I prefer two different analysis methods when trading cryptocurrencies. I make my choice accordingly by making a price estimation using fundamental analysis and technical analysis. In fundamental analysis, I follow the developments related to crypto money. In technical analysis, I look at the graph of the crypto currency. I try to see the finest details.

If I bought Bitcoin at 62K USDT, I have made a purchase by determining the support and resistance levels. Looking at the current chart, I can see that it doesn't make much sense to buy Bitcoin at 62K USDT. This situation will worry me a little bit. Because I made a wrong decision. 62K USDT is one of Bitcoin's highest levels and I bought Bitcoin at this price because of the FOMO effect. When trading, we must get rid of the FOMO effect.

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In this case I am a little worried but still I don't feel too bad. I have to be patient. Because as I pointed out on the chart, there is a strong support zone at 54K USDT. In this case, the Bitcoin price will fall to a maximum of 54K unless there are hard sales.

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But.

If the bitcoin price drops below $ 45,200, FOMO's opposite behavior, "Panic Sell", will occur. Because there is a very strong support at $ 45,200. If the Bitcoin price falls below this price, people will think that we have entered the bear period and will sell even at a loss.

Honestly, I am not a person who uses "stop loss" often because I am a very patient person. But the right thing is to use "stop loss". Sometimes using stop loss can hurt the person. Therefore, one should be careful when using stop loss. We should use stop loss at 5% below 45K USDT price.

If the bitcoin price drops below 45K USDT, the right thing will be to buy some more Bitcoin. What if we entered the bear season? Can I wait another 4 years for Bitcoin to reach 45K USDT again? I do not think so. That's why over-buying causes us to make mistakes in some cases. If you are very patient (enough to wait 3-4 years), you can overbought and lower your average buy price unless you sell the asset below the purchase price.

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.

There are no traders who do not make mistakes in trading. There is a trader who made mistakes even if he made a profit. If he hadn't made a mistake, he could have earned more. Inexperience, not researching enough, waiting a long time, and panic selling.

Waiting for a long time, being greedy

I'm waiting too long, I think I'm a little greedy. When the price of the asset I bought goes up enough, I should sell it. Is it necessary to sell an asset when its price rises 60%? I think it should, but I did not sell it.
A month ago I bought TKO on Binance exchange for $ 3.06. I paid $ 118 in total. The TKO price rose to $ 4.99 yesterday, but I didn't sell it. The TKO price is now $ 4.00.

If I had sold TKO for $ 4.99 yesterday, I would have made a 60% profit. I did not sell it as I expected it to rise more. If the TKO price drops, I will be frustrated because I have made enough not profit and made a mistake.

So once again I painfully experienced that when the asset I bought from a cryptocurrency exchange rose to a good price, it had to sell it immediately.

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

All of the strategies discussed in this lesson are useful. I would like the professor to discuss "panic sell" as well. The ones I find most useful are; Overtrading, Stop Loss and Get to know yourself.

Overtrading

Sometimes it is right to buy again when the cryptocurrency price drops. Even experts argue this. However, there are people who buy when the price of crypto money rises, and this is quite dangerous. By doing this, you increase your average purchase price. Imagine the cryptocurrency price dropping sharply after you bought it. Or imagine we are entering a bear period. I don't even want to imagine how much damage we'll do.

Stop Loss

Stop Loss is one of the strategies that is very useful, although I don't use it much. I will use it often from now on. Stop Loss is usually placed at 5% below the support zone. Let's think like this. Steem's support price is $ 0.5. Let's assume that we also buy Steem at the support price. When the steem support price is broken, I will lose 5%. But if I didn't use stop loss, I could lose around 30% to 40%.

Get to know yourself

This is one of the most important issues. I know myself and will keep making mistakes as I make mistakes. I set myself strict rules before I started trading. I have determined that I will not trade Margin that is directly proportional to gambling and I will not trade frequently. If I do not follow these two rules, I will constantly make mistakes and then suffer.

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 Musk makes such tweets from time to time. He makes tweets about Bitcoin and DogeCoin. And when he posts these kinds of tweets, his asset price really increases. Since Elon Musk is one of the richest, most popular and visionary people in the world, people show great interest in Elon Musk's choices.

The fact that people act according to Elon Musk's preferences creates the FOMO effect, and this is a very dangerous situation. It causes great losses to the person.

It is possible to make a profit if you buy the asset as soon as Elon Musk shares the tweet. But you need to determine the price you will sell well because after such increases, there are hard sales.

If I see Elon Musk's tweet much later, I won't do anything. I do not buy. Due to the FOMO effect, the asset price has exceeded its real value, I do not need to buy it.

I would be glad if the asset he proposes is in my portfolio. If I buy again, I will make a mistake. Buying again (especially on an uptrend) is one of the mistakes that can hurt.

Sometimes there have been times when Elon Musk said that the price of any asset went too high. This situation causes panic among people and they start to sell. If I panic like people, I would be "panic selling". That way I would hurt. Panic sales are also one of the biggest mistakes. I have to be patient and know that this situation is temporary. After a while, the asset price will recover. No need to panic.

Conclusion

People who are not sufficiently experienced in the trade often make mistakes. In fact, those who are experienced constantly make mistakes. We must adhere to the strategies outlined by the professor in the course article. If we follow the strategies, we can reduce our losses and increase our gains. Thanks to the professor for this useful course article.

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