Crypto Academy Week 12 - Homework Post for [name of Crypto Professor] …Don't get lost in the fuzz

Thanks to professor @fendit for describing this "Don't get lost in the fuzz" lesson with us. I learned a lot of things through this lesson. I believe this lesson will be helpful in my future trading. Now I will complete my homework task by answering your questions one by one. Let's get started:

Source

Question: What would you have done before reading this class?

I am an impulsive trader and I am learning new things day by day. If I bought with BTC 62K USDT, now I am asked what I will do. In answer to this question, I would say that there was a lot of panic in me but personally would have sold them at around 56K USDT before go to deeper.

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Question: What would you do now?

I got a lot of new ideas from this class that I can use in my trading strategies. I would wait for a few days and if still, the market did not go uptrend then I have nothing to do except set a stop loss to avoid a bigger loss. Now, I have gone through this class I know how to tackle this situation. I would have set around 60K USDT as my stop loss. By setting this stop loss I will avoid bigger losses.

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Question: What mistakes have you done when trading?

Everyone makes mistakes when it comes to trading. I also made a lot of mistakes in the beginning. I will share one of them with you now. At the beginning of trading, I did a lot of searching on youtube for signals. Then I got some telegram groups. From there I would trade seeing the signal. But I could not take advantage of that. Once I saw a signal and shorted it to Litentry (LIT) coin 9.4$ was my entry and I invested 100$. So far it has never been more than 9.4$. But since I took the position I don’t know why it started to grow. And I was trading at the beginning so I forgot to put a stop loss and since the leverage was high so my liquidation price was 11.2$. I didn't know what to do. After a while, my money became liquidation because the market price was more than 11.2$. I lose my 100$.

Question: What did you learn from them

From this mistake, I have learned a great lesson. Never be too greedy. One thing is very important, leverage should always be kept low, otherwise, the liquidation price will be very close. One more thing I learned is to use a stop loss at the right time. Because the stop loss is not used properly, there is a possibility of a big loss. So if a stop loss is used properly then we can avoid a much bigger loss.

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

From today's lesson, my favorite strategy is: Don't let greed and fear take the worst of you. Because greed is a very bad thing in cryptocurrency. Suppose, the price of a coin is increasing a lot, you bought more because of greed. But after a while it was seen that the price has started to decrease again then you will have to bear the loss.

One more thing is fear, because of this we often face losses. Suppose you buy a coin, its price will not increase immediately, you have to wait. But he didn't have the patience to wait. After a while, seeing the price come down, he panicked and sold it at a loss. So greed and fear can never be done.

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Question: You see that whenever this kind of thing happens, BTC prices rush. What would you have done before reading this class?

Usually, at such times, the value of the coin tends to rise much higher. It would have been difficult for me to calm down when I saw such a price increase. Then I would definitely buy some BTC. Because Tesla company is the best company in the world and since its owner has tweeted like this, then investing there will definitely be profitable.

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

I have learned a lot after reading this lesson. Now I will try to answer this question in its light. Since Elon Musk tweeted, of course, the price of BTC will rise abnormally for some time. Two things are likely to happen at that time, either I will be able to make a profit by buying BTC as soon as the price goes up a little, or if the price suddenly starts falling again, I will have to multiply the loss.

So I must do the sentimental analysis first. Sentimental analysis, if I think that can be a profit from here, then I will invest. But in most cases, I think it's wise to avoid them.

Conclusion:

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The reason for getting lost in the fuzz from the lesson and the ways to survive from there is very nicely presented. Homework has also been given the opportunity to demonstrate the practical application of what we have learned through creative questions. All in all, it was an important lesson for traders.

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Thanks for reading my post.