Crypto Academy Week 12 - Homework post for Professor @fendit - Don't get lost in the Fuzz

Wow, what a great lecture. I want to first of all thank Prof. @fendit for this wonderful lectures, the simple words and apt explanations were just too beautiful. Thank you one's again Prof. I feel excited already trying out the assignment.

Now to the assignment proper.

QUESTION 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.

MY ANSWER

WHAT I WOULD HAVE DONE BEFORE READING THIS CLASS

First of all I would feel very sad and discouraged. Looking at that chart analytically, they has been a massive downturn of the graph. I bought it at a rate of 62k and now am looking at it falling to 50k then moves a little bit up to 54k.

Now before this class from fear of lossing it all and from the stories I have been hearing about coins falling in it market price and suddenly loosing value, I will start thinking this is one of those cases. I'll be very much tempted to sale it off, if I won't even sale it off already.

WHAT I WOULD DO NOW

Reading through the profs. lectures today, selling my BTC off won't even be part of my worries. My reasons are started below.

• First of all I'll carefully carry out my technical analysis on the chart, now looking at the chart, it came from a low point to form the new high were I bought it from, now there are 99 percent possibilities that the price will always go up again. So what now, I wait for that time.

And mind you, selling it now spells a great loss, even selling it at the same price as I bought before start no return of investment. So I excersize alot of patience as that is what is required of a good trader.

• Now another factor that will diminish my worries is the fact that BTC is an already established coin, so the fear of Loosing it All won't come in..

That is why it is advisable to invest in coins that you have carefully carried out a fundamental analysis on. So you don't fall for scam coin and you won't also have to be worried about the coin going into extinction, atleast only be worried about the technical ups and downs of the coin.

There is nothing I would do differently though apart from the aforementioned.

QUESTION 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 ANSWER

1. MY MISTAKE

Now am going to be talking about the experience I had with a coin I was Hodling. And that is STEEM.

Now on the 2nd of April, 2021, I practically watched the coin surge(bullish run) to 600 naira, before now I wanted the best high to cash out on the market. That very day I watched it climb to that point but due to psychology of it will rise even higher.. I allowed it only for me to come back to see a significant fall, market corrected, I almost cried.

For a coin a bought at a rate of 150, that would have been a very good return of investment.

WHAT I HAVE LEARNT

-Now reading through this lesson it gives me alot or hope that nothing was totally lost that I was only portraying the characteristics of a good trader.

-Secondly, if I had immediately looked back at the technical analytical history of the coin, I would have understood that the coin does not stay for long at the bullish point because of it high volatility. So a careful study of the coin's chart is always very important.

A FRIEND'S MISTAKE

Now before I start talking about mine, let me tip in this advice from what a friend passed through. Now she started crying of how she had lost everything on a coin she invested and not just that, the coin went into extinct(the owners folded up), she was even depressed at the time.

WHAT I HAVE LEARNT

So I have learnt that before proceeding to purchase any coin I have to take into consideration:

• the fundamental analysis
• check the coins white paper..
• have a clear knowledge of who the creator of the coin is and where he or she was working before proceeding to creating the coin.

Assuming my Friend carried out all this analytical procedures she won't have fallen for this scam/shit coin.

1. THE STRATEGY FROM THE CLASS I FIND MOST USEFUL.

I find two strategy very important: Setting a Stop Loss limit and Not investing an amount of money you are not ready to loss.

STOP LOSS

Screenshot from coinmarketcap.com

Now as a smart trader it is always good to set a stop loss at positions found most convenient ecspecially with an asset that tends to be very volatile.

The best place to set a stop loss is the last low to the most recent high in the chart(market price).

NOT INVESTING AN AMOUNT OF MONEY YOU ARE NOT READY TO LOSS.

I have adopted to this principle whole heartedly. Recently you hear people commit suicide because of failed investment ecspecially for non physical investment like the Crypto Asset and Forex Trading.

Please I advise every investors both on physical investment and non physical investment, that they should not invest everything in any business investment you are willing to get into. So that if a downturn happens which we don't pray for, you won't contemplate suicide.

Plus don't also invest your means of livelihood according to the professor.

QUESTION 3

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.

MY ANSWER

WHAT I WOULD HAVE DONE BEFORE READING THIS CLASS

Now when situations like this occur, there is always a rush in on the asset as rightly said by the professor. I would rush to invest on the asset and would have been tempted to invest all my money as the startup capital with the idea that it will still keep surging. No stop loss, no looking back. That is insensitive right, but I would have done that looking at who is posting it and the number people that will get to read that.

NOW AFTER THE CLASS

I Will still invest on the asset, but then, I'll run a careful technical analysis on the asset's chart, for like a week to see if it will truly continue in the bullish run. Then adapt to the "don't invest all" strategy and also set my Stop loss. So Incase anything that I did not plan for negatively happens I'll still be safe.

CONCLUSION

In view of the very volatility of the cryto market, traders both beginner or olders should always at every point adapt to a safe strategy inwhich they can always fall back to, to avoid high loss and less return of investment.

Thank you