Homework Summary [Beginner's Course] - Crypto Academy S5/W7 - Risk Management and Trade Criteria.

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Season greetings everyone, this is the summary for the 7th week of Season 5 in the Steemit Crypto Academy. In this lesson, we dealt with Risk Management and Trading Criteria in the crypto market. This lesson sums up all the topics that have been treated this season. The reason is that, no matter the knowledge you have in technical analysis or the number of strategies you have learned, failure to maintain risk in your trading journey will see you struggle in the market.

Risk Management plays an important part in the life of a crypto trader. It doesn't only help you to minimize potential losses in the market, it also makes you a disciplined trader by eliminating over trades. In the lesson, we discussed the importance of risk management in the crypto market and also the basic risk management tools a trader can deploy in his trading journey. The following risk management tools were discussed in the lesson:

• 1% Rule.
• Risk-Reward Ration.
• Stoploss and Take Profit.

The above risk management tools are the basic tools every trader must utilize in the crypto market. These tools must be carefully implemented before a trader executes any trade position in the market.
At the end of the lesson, the student's knowledge was tested using the following questions below.

• Explain your understanding of Risk Management and its importance in the Crypto Market.
• Explain the risk management tools listed above.
• Open a demo account and execute two trade positions on crypto assets. Explain the risk management tools deployed in the trade executed.

There were great responses to the homework task. The students did great in proving their understanding of the lesson. The majority of the students had difficulty in carrying out effective chart analysis. I tag this to being impatient with the market structure and the right setup to play out. We have discussed market structures, trends reversal, and also trend continuation patterns in the previous lessons. I urge everyone to keep working on carrying out effective chart analysis. You can always revisit the previous lessons to have these patterns registered in your memory.

One problem I noticed with the students is being patient for a setup to play out. This is the genesis of being a patient and disciplined trader in the market. The setup will always unfold in the market, you just have to wait for it. There are so many crypto pairs available for your homework task. Also, you can switch in between timeframes to unfold the trade setup you need for your assignment or you can also be patient for it to play out.

The goal is to demonstrate what we have learned practically on the chart. This is the reason we always include a trade example in the homework task. I understand it is not easy as a beginner but I believe that hard work spending quality time to understand these lessons will help you to become a good technical analyst.

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At the end of the week, we had 79 entries. The task distribution is as follows:

• 74 Valid Entries
• 5 Invalid Entries
• 0 Plagiarised / Spun Content.

This can be further shown in the bar chart below.

Grade Statistics

Reference

• Plagiarized content refer to users who copied someone else’s idea without referencing the original source.
• Below average refer to grades below 5.
• Average refers to grades within 5 and 5.9
• Good refers to grades within 6 and 8.9
• Excellent refer to grades within 9 and 10.
• Invalid entries are for posts from users who are not eligible to perform the task. Also, late entries are for participants who submitted before the scheduled time which is 11:59pm UTC, on Saturday 1st January, 2022. Participants who do not meet the requirements for #club5050 are also in this category.

The chart above shows the overall performance of the homework task. From the chart, we can see that 29% of the participants scored above grade 9 while 60% of the participants scored between grade 6 to 8.9. This makes it a combined 89% of the participants who scored above grade 6. This is an impressive performance from the participants and I wish this result keeps improving. Also, 4% of the participants scored an average score of 5 while only 1% scored below average. This can be tagged with being hurry to submit the homework task without understanding the lesson properly.

6% of the homework tasks were disqualified from users who do not meet the eligibility requirements to participate in the homework task. The majority of these cases are users who do not meet #club5050 criteria as they haven't powered up to 150 Steem in the last 30 days. Please always check your eligibility status using Steemcryptic before performing the homework task.

Finally, there was no case of plagiarism / spun contents detected in this week's lesson. I believe the students are well oriented on the implications of plagiarism in the academy. We encourage everyone to keep publishing quality and original content.

The chart below shows the scattered plots with an average score of 8.

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Top 3 Homework Task

Below are the top three homework task with an outstanding performance.

Username	Homework link
@abell24	Homework post link
@msquaretwins	Homework post link
@beckie96830	Homework post link

Conclusion

I will like to thank everyone who took part in the homework task. I'm impressed with the improvement in the quality and also the presentation of the submissions. We will keep trying our best to introduce exciting and important cryptocurrency topics to help you make good trading decisions as a beginner. Never forget the lesson on risk management as a crypto trader. Ensure you implement these tools in every investment decision you make in the market.

I wish you all a happy and prosperous new year.

@reminiscence01.

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@steemitblog