Crypto Academy season 2 week 4 - Homework Post for @fendit | Don't get lost in the fuzz

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.

In the scenario where I have/had no idea about the contents of the lesson thought in the class. I believe the more obvious and appealing course of action I would have taken would have been to panic sell. No one likes to see their investment go down in loss and bitcoin has constantly displayed how unpredictable it can be sometimes so the more obvious thing the ignorant me would have done is panic sell.

What would I do now

Generally, market behavior can't always be predicted with 100% certainty. Instead of panic selling, I'd set a stop limit at a lower point. Let's say a previous support level to initiate a trade when this level is hit in the case when BTC continues to dip. If a turnaround happens and the market goes otherwise, the stop loss won't trigger and I wouldn't lose much in the process as I won't have to panic sell at a lower price only to buy again at a higher 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.

One mistake i constantly make in my trading journey and sometimes still find myself being a victim to is the Fear Of Missing OUT (FOMO). I'd usually spend time watching every major coin and when I see one skyrocket in value and sustains its uptrend, I'd usually sell off my investments or trade them for this asset/ instrument hoping to join the trend and bag some profits. The surprising thing is it never always pays enough, I'd often find myself stuck in the trend for so long as I never always remember to use risk management to stop loss. It's almost like an instant short-term trust in the trending markets. Over time the initial major investment coin A would pick up in value and in order not to miss the trend I'd panic sell again and end up buying the coin at a higher price.

Which of the strategies discussed

in this class, you find the most useful for you? Why?

I'd say the stop-loss feature. I never really paid much attention to this feature as I'd always convince myself I could manage my own trades but in reality, I can't expect to spend the entire day staring at my stocks and assets. The stop loss feature plays a crucial role in risk management and more than often saves from hitting a margin call when trading.

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.

Truth is, i never ignore tweets like this, if Elon tweets something like this it almost always ends with the financial instrument in consideration pumping in value. It happened with bitcoin, its happening with DOGE so a honest reply would be I'm definitely going to hop in the trend early enough and benefit from the trend. its all about sentimentality, obviously a large number of people are seeing the tweet and hoping to take the same action.

Before understanding the course I'd have gone all in and traded my portfolio for BTC right away to farm as much profit as possible.

After taking the course
You never know how the market might move. A slight turnaround could deal a great blow to my assets hence I'd only try to invest that which I know I'll be comfortable with losing and then employ an effective risk management strategy with the use of the Stop-loss feature.