Homework task by @wonderbowy fro @fendit {Steemit Crypto Academy - Season 2, Week 4} Don't get lost in the fuzz.

INTRODUCTION

Thanks to @fendit for this weeks lectures, lots have been learnt. How i wished I had gone through your lectures earlier. This knowledge would have saved me from the near loses I made investing in dogecoin.

Lucky for me, I didn't make the greatest mistake by trying to avoid huge loses.

I have gone through the lectures and have really understood it. Some points elaborated on are the various mistakes a trader is likely to make which can result in huge loses.

These mistakes includes;

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1. OVER-TRADING; this type of mistake is mostly made by newbies who are fresh in trading. We are only eager to make more money within the shortest time. And we rush into taking decisions whereby making some many trades within a short period of time. This is a bad habit because it can lead to loses due to sudden lack of controlled emotions. This happens when you start losing.

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1. REVENGE TRADING; this is when an investors loses lots of money because things didn't go as planned or expected. As a re3sult, the investor will want to minimize loses by placing more trade at all cost.
   Which could lead to more loses.

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1. STOP LOSS; they are very necessary when it comes to trading. Stop loss are set to prevent very huge loses. As a trader, you might not be able to monitor your trade at all time but when stop loss are set, when you make loose to a certain level it can close your trade to prevent further losses.
   Most newbies, might not know how to set it or even have any knowledge about it making them loose drastically.

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1. FOMO;meaning FEAR OF MISSING OUT is also another point elaborated on by our lecturer. Which was explained as a situation an investors sees a particular currency shooting really high and due to the fear of being left behind also try to quickly invest or trade that currency. Probably this coin might hit its peak as at the time of investing and after some few hours of investing this same coin might be falling drastically. If you are not lucky and withdraw too, that might be a loss.

The various points above are mistake that makes investors or traders loose their assets according to my personal understanding from this weeks class.

Now lets go straight into this weeks homework task.

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:
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What I would have done before reading this class.

From the scenario above, any normal or new trader who for one reason or the other have not acquired the knowledge from this class would have probably sold all his or her bitcoins for the sack of minimizing loss.

This is actually the fear or losing everything, most traders even me would have done this if not for the knowledge I have acquired through cryptoacademy and all thanks to @fendit.

What I will do now

Looking this, first of all, i would have to control my emotions because emotions plays vital role in crypto trading. If you are not able to control your emotions you will be forced to take quick discussions which could lead to mistakes and resulting in huge loses.

I will not trade because of this huge lose but will rather I will take a good look at the chart and analysis it to see what exactly is causing this sudden down fall of the coin.

To be on the safer side, I will set a stop loss for any huge downfall of the coin. That is one good precaution to take as a trader, probably 10-20 % is okay.

But in case I forgot or intentionally didn't set a stop lose, I will hold on with the trade, hoping it will go up in the near few days. Remember bitcoin is volatile and anything can happen. It might go up in the next few minutes after you have closed the trade.

Explain in detail if there's something you would do differently.

To be frank when I see it fall this huge , I will analysis the support and resistance then if possible buy more of the coins in addition or open another trade.

Because I will only invest money I have no intentions of spending, any down fall of bitcoin in this scenario will be of great joy to me because that will create a chance for me to invest more.
So when it goes up again I am going to make double profit.

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

This experience is just fresh as you can think . Just yesterday, when doge was shooting up. From 0.34 USD to another level, I realized I was missing out because all my friends have acquired some doge coins. And
This is what we refer to as the FOMO, emotions started setting in.
I quickly log into my finance account, and every minutes doge coin was just sky rocketing.

By the time I had converted my Ether to USDT in order to do the doge spot trade, it had reached 0.60 USD, that's roughly more than 55% increment. From 0.45 to 0.60, the fear of missing out set in, I took the risk and did a trade at 0.60 hopping it might exceed 1.00 USD.

Just after a few minute later, doge had falling down to 0.51 USD and soon entered 0.45 usd.
I was so surprised, If I had waited a little bit, i could have not bout at this current rate which would have brought lots of profits.

The only good thing I did was not panicking and causing a mess by selling out at the state. The act of controlling my emotions.
I got up today and had realized doge has gone up to the current rate at which I bought it.

I was even praying that it might fall to 0.30 so I buy more coins which didn't happen.

All this mistake could have been avoided if i had taken my time to see how things turn out to be before entering into this trade.
A little patient and not allowing FOMO to set in would have given me huge profits.

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?

C) Placing myself in the following situation:
You're browsing Twitter and you see this:

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You see that whenever this kind of things happen, BTC prices rush.
What I would have done before reading this class

I would have quickly dumped all my life savings on it expecting it to boom in the the next few month forgetting that anything can happen.
I can loose all my money or asset, it might not even gain any huge profit.

What I will do now? Explaining myself in detail if there's something do differently.

I will take my time to analyses everything, taking into consideration, some good fed back, chart reading, some projects associated, some other investors etc.
Remember investing is not about what you know but the figures and charts, and controlled emotions.

Thanks for the lectures, it was very effective and hopping to part take in your next assignment.

THANK YOU......