Crypto Academy Week 12-Homework Post For @fendit by @sadiaanyat

Hello everyone!. I would like to thanks to the professor @fendit for sharing such informative lectures every week. The lecture of this week was so informative and now i am going to put in this assignment what i have learnt from this lecture.

A) Place yourself in the following situation:
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.

We all are familiar now with investing, trading, selling and purchasing the coins. The idea of getting huge amount in a short timing excite us and we take step in crypto currency world. But we also should consider the fact that with chances of getting the higher reward, we can also lose our money sometime in crypto world. Most of the time it happen just because of our impatient behavior and mistakes.

i) What would I do before attending this lecture

If i invest my coin in market and after some time if see that the situation is getting worse and the price of coin going down, i may got panic. I may loss my senses after seeing that i am losing my money. What i would do is i would sell all my coin at that point. I wouldn't think about any other thing at that certain time. I have did this in past that whenever the market price of a coin where i have invested goes down, i rapidly try to sell all my coin. I think many other people also do the same. I would not see what will be the future of the coin and whether teh coin will go up after some time or not. I would just sell all my coins when i would see that the market is at its bad time. When ever i would see that the price chart is not going according to my plan, i got panic and would take wrong decision which will result in lose of my money.

ii) What would I do After Attending this lecture

As now i have learnt i lot about what to do in panic situation from this lecture. So next time i face any situation like above, i will not lose my sense. I will get panic. We got panic and make the wrong decision by following the others. First thing we need to understand is we should not follow others. If i get profit, that will be mine. If i lose my money, that will be my lose. No one will fulfill my lose. So first thing is i should think by my own for myself instead of seeing the others. Second things is, You should do the price forcasting before investing in some coin. We will get an idea about what will be the future of the coin. After investing, if you see that the market going up or going down, then instead of making the wrong decision, we should try to find out the reason behind that uncertain fall or rise. There always be a reason if market trend high or low. So if i ever see next time that price goes down then i will not sell my coins. Instead, i will prefer the sentimental and technical analysis and will try to know that either the market will go down furthermore or the future is bright. The crypto world is volatile. The chnages make every second. So if this is the downtreand of market then surely it will be change next time. I will wait for the time when market will change again and will come on my prediction line. I will hold my coin unless and untill the market again will go up.

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B) Share your own experience when it comes to making mistakes in trading:

1. 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?

Yes, i had two very bad experience. A few days ago, i had some steem in my wallet. Suddenly i saw that the market goes down. The price of steem was continuously trending down. I though that it would be going to the lowest price in upcoming days. I didn't do any technical analysis. Neither i did the price forcasting. I just sold my all steems at that price. But then after some days, i realized that i had made a big mistake. Because the price is going back to uptrend. The market is back and the steem price is going high. Then i repent on my fault of selling the steem price and on making the decision at my bad time. I faced a big lose but that was my first experience of lose in trading.

After some time, I saw that the market is getting high. So i didn't wait for any further profit and sell my steem. I though that the market would goes down so i should sell my steem before the market fall start again. But after just five days, i saw that the price of steem got almost 2 time high from the price i sold my steems.

Now from my experience and from this lecture i have learnt many things which i think, will be helpful to get the good profit in crypto world next. The points i got from this lecture and from my experience is:

BE patient

The most important thing to become a successful trading is patience. Don't get panic with worst situation. If you see the unpredictable things happen in market, then don't make the wrong decisions. Always have patience.

Be persistent

Before investing, you always should do the price forcasting. It will help to predict the future of coin. You will get to know that either the market will goes up or will be down in future. After ensuring that the market will high, do investment. After that, if you see that an unpredicted change is occur in market, and market starting going downward, the don't be hurry. Be persistent. Keeping holding your coin unless and until the market get back to its route to upward.

Don't Follow Others

When the market goes down, the worst thing is people start following others and sell their coin which cause a lose of money. So if next time, I suffer this situation again, then i will focus on the facts, will do the analysis to make decision of what should i do now. I won't follow the others.

Control Your emotions

Whenever i saw that the market is going up, i got excited and sold my coins. Whenever i saw, on the other hand, that the market goes down, i got panic and again came with selling my coins. But every time, i faced the lose. So whatever the situation is, we shouldn't be panic, nor be emotional. We should do price forcating and analytical and sentimental analysis instead of being emotional or being panic.

Don't be greedy

I learnt from my experience that greed always cause a big lose. Don't get emotional or panic if you see an unpredicted change in market fall or rise. If market goes upward, let it touches the peak and then sell your coin. For that do the price forcating, technical analysis and sentimental analysis. If the price of coin goes down, then instead of selling your coin with the fear of market crash and losing money, wait for another change when market will start again going up

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

As i am newbie in crypto world, So all the strategies discussed in this lecture are amazing and informative for me. I learnt a lot from the lecture. But the strategies which i think are more beneficial for me are;

FOMO

I have shared my two experience when i lost my money. The time when I sold my coins with fear that the market would fell more day by day and the time when i sold my coins thinking that the market is up and soon it will start falling again. Both time i made decision in hurry without doing any technical analysis and price forcasting. The crypto world is place where changes are occur every time. If market goes up, it will fall one time. And if the market is down, it will start rising again. So the need is to wait calmly for change. I learnt that if we want to buy the coins, we should wait for price to goes down to the greater extent after price forcasting. And if i want to sell the coin, then i should wait until the market goes high.

Most of us, when see that price of a coin is low, they invest in them. And after ome days, they notice that the price fall more. So it was not right time to invest. And samething happen when we want to sell our coin. We sell our coin when we see that the market rise a bit. We sell with the fear of fall. But after some days, we see that the market is continuously rising and you might get good profit if you would sell your coin before. So the need is just to wait for the right time.

Revenge Trading

When we lose our money, we get panic and want something in return within no time. This impatience causes the wrong decisions. We invest again in some other coin, to get more profit. As we do this just to take revenge of our lose without doing price forcasting, so we again have a big lose. After reading this lecture, i learnt that we should stuck on the point we had lose. We should take it as an experience and should learn from that. Investing again without any research or study may turn in a big lose again. So focus on facts. Study more and do price forcasting before investing.

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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

i) Before reading this class

As we know that the Elon Musk is well known personality in crypto world, So if he tweet about the price of BTC, it means that definitively some big change is going to happen. After seeing this tweet, i would go to buy the BTC as much as i could. I would get mad thinking about the profit i would get out of it. I know that all investors would buy the BTC thinking that BTC price rush and they would get good profit. I would also buy the BTC after seeing this tweet of Elon Musk. Then simply i would wait unless and until the BTC price rush.

ii) After reading this class

Before reading the lecture, i was simply relying on the Musk's tweet and would invest as much money as i could to buy BTC and to get the more and more profit. But after reading this lecture, now i will not rely much on anyone. I will do my research on the coin i want to invest in. I will do some study, will do the price forcasting first before investing. As we know that if after this tweet the pricse of BTC goes up, it would definitively will fall again after some time. So there is no need to take risk at all by investing extra money which you cannot afford. Only invest the money which you can afford after doing your research.

Conclusion

We have learnt in this lecture about how and when to do the investment. We have learnt some strategies which can save us from big lose in crypto world. Moreover we learn that we should not follow other. Instead we should do research on our behalf and should only invest that much coins which we can afford. We should control our emotions here should make decision very peacefully after doing complete research on some coin where you want to do the investments.

Cc:

@fendit