Homework Task-Steemit Crypto Academy | Week 12 | Course By @fendit

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 of this chart is going on below:

What would you have done before reading this lecture Guide?

Answer: I'll immediately sell of my BTC and wait to but another when the price drops.

What would you do now after reading the Lecture Guide.

After reading the lecture guide, I came to the conclusion that trading of Cryptocurrencies is very different from all other investment, it is not a fast money or profit gaining business, so I now understand that it's not just any rise in price of Cryptocurrencies that expect the trader to react to.

In Cryptocurrencies, the actual rise (bull) in price last longer. So If I bought Bitcoin at 62K USDT,I might have the urge to get the BTC sold at any possible rise knowing fully that BTC will not rise much further and that definitely shows that I overbought the BTC because of FOMO, and that will make me worry Abit. But there's something that is calming in the above chat because it shows that the BTC will fall again not to long to 54k unless we have a strong trends. In this case, the Bitcoin price from the chart indicate that it can fall to a maximum of 54K unless there are hard sales.

So I'll just wait for a while to see how the price goes if it continues to be going to be 15% lower than 45k, it's then I will come to the conclusion that we are in a Bear market and if I have enough extra funds I'll buy the BTC and forget about it until we finished the Bear market which might stay up to 4 years. Until we come back to the bull market. I'll try to avoid FOMO.

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.
Mistake is a natural occurance in every day to day life activities with Trading inclusive. Mistake is inevitable in trading even if there's is profit as there maybe be more Profit if no mistake is done. Part of what causes a trader to make mistake is lack of proper experience, lack of up to date news, little or no researching, more expectations and FOMO

There was a trader that had a very sad experience as a result of more expectations. The trader didn't act when the price of the asset goes up and he waited for some days hoping and expecting that the price will keep on going up, instead of him sell the asset, he convince himself to wait and unknowingly for him the price of the asset drops and drops and drops until he found himself in a mess loss because of the mistake he just made by waiting longer and being little greedy.

And as such he learned to sell the asset immediately when the price rise.

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

The whole strategies discuss were all valuable and useful but I came to found get to know yourself, overtrading and stop loss as the most use strategy in Cryptocurrencies trading.

The get to know yourself strategy is a very important issue because it helps to reshaping me and make me to be ready for whatever the situation that may occur. Knowing the type of trader you are help to benefit you from falling in to mistake and whenever the mistake might come you will be able to avoid it.

Overtrading is also a very important point in strategizing Trading . It is quite right to buy an asset when it price drops but some people don't know exactly when to buy an asset that they end up buying it at a higher price which in the end it will turn out to be unlikely.

Good timing to buy crypto is very important to avoid increasing the average purchase price. And when a bear period comes immediately after the purchase, slot of pain will be absorbed.

Stop Loss is also an important strategy in Cryptocurrencies trading, and one can easily act when he sees the price is dropping day by day as it is usually use immediately when the price is below a 5% from the support zone.

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?

The first thing that comes is the FOMO effect, I'll start panicking, thinking maybe be it's likely that price will rise soon so I'll start buying falling in to overtrading.

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

I will not do anything after seeing this tweet because I know that saying that would bring panicking and FOMO to set in for most people because of Elon Musk social status I know everyone will want to act it even after knowing fully that the crypto have exceedingly rise from it actual value.

@fendit