Crypto Academy Week 12 - Homework Post for [@fendit]

Hello, Steemians. I am very happy to learn at the Steemit crypto academy and also learning from @fendit our crypto professor on the topic “Don’t get lost in the fuzz”.

Question 1: place yourself in the following situation. You bought BTC a couple of days ago at USDT 62k. Suddenly, you see that this situation is going on:

i)What I would have done in the situation above before reading this lecture.

Having little Know-how in the crypto world, patience would have been my best movement across the market. This is because rushing might cost you a huge amount of loss whiles you could have waited to avoid it.

In this case, I would have had the patience for some while to a glance in the market to see and be sure the behavior before any decision could be made.

Example as sited in the Question: I bought USDT 62K per bitcoin, I would wait for some period of time to be triggered by market volatility for longer hours and then put my stop loss in place to avoid massive loss.

ii) What I will do now after reading this lecture?

This lecture has really taught me a lot about the safety precautions needed to be put in place for a safe trade. The stop loss feature is really a great considerable feature that needs to be considered.

Assuming I got myself busy and for that matter with no laudable reason to justify myself, I was unable to keep track of the price behavior of my asset having the market gone dipper before getting to know of it, would be a great loss on my path and in other not to incur such loss, I have utilized the stop-loss feature on my market as taught in today's lecture to avoid loss and rather wait for another convenient time that the market would be optimistic and buy the asset.

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Question 2
Share your own experience when it comes to making mistakes in trading.

i) The costly mistake I have made in trading.

I have got to admit that I always fall a victim to FOMO. I had jumped onto several Doge bull run at an inappropriate time with studying the market which has really caused to loss of almost $100. I bought my first DOGE tokens on 2021-02-17, 08:14:43 for 0.0535 for $10.96 which earned me 205 DOGE tokens upon recommendation from a friend.

Trading View

I was anxious for what I got to know as price mooning and didn't really understand the essence of HODL. I eventually sold my 205 DOGE token for only a $1.472 profit on 2021-04-80 21:28:10 for a price of 0.6095.

^{#Screenshot from Binance Trade History}

I eventually bought $299.868 worth 735 DOGE tokens on 2021-04-19 at 23:52:34 due to the fear of missing out. DOGE experienced a bear run not long after.

I panic-sold my 735 DOGE tokens for fear of losing much for 0.30669 for only $225.412. I ended up losing about $74.39 off my initial $299.868.

I have made subsequent FOMO trades trade which has caused me money but I believed I'm adapting to the trade market and now with the knowledge of Stop Limit, I can vindicate myself before there is much loss incurred.

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

I am quite fascinated by the Stop Loss feature thanks to this lecture. I have tried my hands on it and I'm in love with it now. It is definitely going to be my favorite in a long time now that I know of it.

My previous trade loss has taught me a valuable lesson to take time to analyze the market trend before I make a decision either to buy or sell an asset. I find the strategy to never invest money that I'm unwilling to lose also useful. Henceforth, I'll only be willing to trade money I can spare in markets that are highly volatile. I also intend to avoid overtrading so I can focus on the specific few markets to make profits.

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Question C) Place yourself in the following situation:

Before this lecture, I would definitely not hesitate to jump on the train as such tweets result in the mooning of the mentioned token. I would only watch the market periodically and set alerts for market price drops so I wouldn't miss out on bearish runs. But this method wasn't always effective as I tend to miss notifications of the price alerts and still end up losing my assets.

This lecture has taught me not to jump on any trade-in FOMO. Rather, I will only enter the trade when I have money to spare without the pain of losing it. Subsequently, I will set a stop loss to minimize the amount of loss in case the market turns downside in a bearish run,

Conclusion.
This is a lovely class and it has helped me remember and notice my mistakes and it is going to go a long way for me. Such mistakes won’t be repeated twice. Thank you @fendit for this wonderful lecture.

cc:
@fendit