STEEMIT CRYPTO ACADEMY: SEASON 2 WEEK 4 BY @FENDIT :: DONT GET LOST IN THE FUZZ & COMMON MISTAKES MADE WHILE TRADING

INTRODUCTION

---

Hello fellow steemians. Its another week in the season 2 of the steemit crypto academy course. It has been a great course so far and i was able to learn new things on this course. This is my answer to @fendit lesson

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:

---

As a crypto trader there are so many things to learn about the movement of a particular market you are trading. Every trader make profit and also make losses in some days. Your losses doesn't mean you are a bad trader. For one to be a successful trader one will make profit and also make losses but your profit should be more than your losses. And in days of loss what would you do as a trader.

Base on this first question let me just imagine i bought BTC at the price of 62k USDT suddenly i saw btc at 47k USDT. What will i do?. If after buying btc at 62k and i woke up the next day and saw BTC at 47k usdt the next morning first thing i know i have lose a lot of money sure that a big loss for me. After seeing this loss i wont do anything or bother to close the trade. I will just accept the loss because i know it will only take months or weeks before btc will come back to that price. If i was to run with the loss by closing the trade what will happen to the money i already lose? It won't just come back after closing the trade. To me it means i already accept the loss when i can still get y money back if i was patient enough.

I knew if i still remain in that trade i will regain all my loss back it just requires me to be patient. All trader must be very patient when dealing with losses. Normally the money in your investment is a money you don't need very quickly or soon. Its already obvious that all time high seasons wants to start and btc will rise again and will possibly rise above 62k usdt. I wont only make profit when this happens but will also recover all the money I already lose. But if i had ran with the loss i had initially i wont be able to regain my loss and also make profits. So every trader just have to be patient and all your loss fund will be regain back as the market will definitely comes back up if you are patient enough.

As a trader whenever you make a huge loss in your investment all you need to do is to just be patient for the market to regain your buy price. And you also have to know the after a downtrend / dip in the marker price always follows an uptrend. Even if you have more money to invest i will advise that you buy the dip buy it when you market price is low because by the time the market price will rise back you are also making profit along you tends to buy long when you buy a dip and the profit is always high. Even from the chat you will see that btc is already trying to regain its prise back its is now around 56k. If i had bought the dip as suggested i will be making profit by now even enough to cover my loss. So by the time btc will get to 62k usdt i have regain my investment and also made enough profit from buying the dip.

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

My experience when it comes to trading. It was a long time ago when i just started trading on binance i always feels like i should be in all market so am always overtrading later in the day i would actually make loss. I always want to start a trade and in about an hour i would close trade i continued like this till i saw this asset YFI its a crypto currency on binance with very high price but not up to that of btc. I was dragged by the movement of the market. It keeps going higher and higher as at that time the price was around 6-7k usdt but coin was pumped i guess so i entered the trade at 9k usdt hoping to sell at 10k-11k but after. Executing my buy order the coin rise a bit then later dropped. But as a beginner that i am i was afraid of losing all my funds so the closed the trade running away with huge loss. after a couple more trade i was able to make profit.

Then i plan on regaining my money from YFI market i open another trade again . i couldn't check the trade before going to bed. When o woke up the next morning the coin was among the top loser for the day i couldn't imagine what i have done i checked my wallet and i could see my funds is below 10$ i loss over ,12-13$ in the trade. I layer closed the trade also. Now see what YFI price is now if i have left my investment in it years back it would have doubled my investment if not more because the price of YFI has doubled over the year. It was a very huge mistake from me.

OVERTRADING
From all the strategy i would like to talk about the overtrading . if you have been reading through you will see that overtrading and failure to set stop loss was what ruined my investment. I will sure talk against overtrading. Its not good for a trader to be trading different asset like you executing over 10 trades in a day its very bad better still buy a coin the hold it for a long time you will surely get your profit. Patience is the key its have a huge reward for you and me as a trader.

) 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.

If i'm going through twitter account an and i say something like the this i will just go straight to my binance account then i will invest all my funds in btc i will buy enough btc because for someone like Elon Musk to twit on btc check btc the next day i will surely rise more people will buy btc due to the twit they saw. This will boost the liquidity of btc and leading in higher price.

CONCLUSION

That all on the topics it was g great lesson from @fendit. I am looking forward to doing more of your lectures sir.