{Steemit Crypto Academy - Season 2, Week 4} Don't get lost in the fuzz

Trading is all about buying and selling, either stocks, forex, indexes, cryptocurrency, and so on. There are a lot of people who invest, but the market is alive because a lot of people trade. They either day trade, flip, trade quarterly or perpetual futures, and so on. Interestingly enough, while a lot of traders make money in the crypto trading market, there are a lot of people who lose money as a result of not knowing what to do or how to go about it. In the assignment by @fendit, the mistakes that traders make are explained as well as the trading psychology to use while trading. if you missed this post, you can read the post here. At the end of the lecture, @fendit gave an assignment that is required that the student writes/answer and post. I will be answering the question in this post.

Question 1

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What would you have done before reading this class?

Everyone will react to price actions differently and while some are very professional, a lot of people are a novice in trading. I had Bitcoin at 62k and when it dropped to 10%, I had to stop loss. If it were to be altcoins that dropped in price while Bitcoin was still stable or a little high, I could have Hodl as the price will go back near the previous resistants, or pass it, So I will be to hold and not lose my funds to alt but when it comes to BTC in the cryptocurrency market, the market is a reflection of the Bitcoin.

When the price dropped by 10%, my stop order automatically sold and when the price started to increase after a serious fall, I bought into it again and held my position.

What would you do now? Explain in detail if there's something you would do differently

I would have done nothing different actually as I would still work with the psychology of trading explained in the class which includes using the Stop-Loss to alleviate the loss.

Question 2

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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.

Trading against the market.

When I started trading futures, I was really not knowing what I was doing, so I would always trade at every 1-minute candlestick not considering that the market will always rise and drop. At that point, when the candlestick was green, I would long but after longing, the market would correct itself or just a few sells would turn the candlestick red, and instead of me to leave the trade so it could go up at its pace, I was going to stop the trading at a loss and would start to short again after which the market which starts to gain and there will be buys leaving me at a loss again.

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

Do not let your emotions control you

As a newbie, I was always trading based on emotions, longing at the sight of green and short at the sight of red with the intention that the candlestick continues in my favour but the reverse became the case.

I always buy into any coin in the past without checking the coin properly but this is not going to happen as I do not FOMO. Before buying a coin, I would look into the technical analysis and the Fundamentals.

Question 3

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First, I always give room for a coin to dump or rise as a result of economic activities and other fundamental analytic reasons. With Elon, buying the coin will be a necessity as he is VOICE in the industry but then, I would check the coin properly, the trend, the price movement and the volume of trade per price change. If I am eventually going to buy into the coin, I will be trading with cash I can lose.

When I was a beginner, I would have bought into the coin without looking back twice at the coins info but currently, I would do the needful before trading a penny.

Conclusion

Reading @fendit lecture, I was forced to recommend it to a few friends of mine who are newbies in trading and they confessed to have learned from the post. Thanks a lot for the class and the assignment.