Steemit Crypto Academy - Season 2 Week 4 by @fendit| Don't get lost in the fuzz

Last week, I did not have the opportunity to attend crypto academy courses. I will continue to attend the courses after a week. Teacher @fendit told us what to do when traders make the most mistakes when trading cryptocurrencies.

People are anticipating when making cryptocurrency investments. Some make these investments to become very rich. Therefore, when investing in cryptocurrencies, we make both an emotional and a financial investment. Therefore, traders start to make big mistakes in the smallest negative situations.

I want to answer the questions asked by teacher @fendit. We have to use our imagination in all of the questions.

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.

Before attending this lesson, I want to explain the moves I will make one by one. Of course, all of the moves I will make are wrong.

I would be very worried. Because I bought Bitcoin at 62K and the Bitcoin price dropped by 8K. The opposite of happiness would occur when Bitcoin increased by 8K. Because I was worried, I would look for ways to get out of this situation. Of course I would have made more mistakes.

I would continue to over buy. Because I thought the Bitcoin price would surely increase. What if things don't go well? If we enter the bear period, what will I do then. I would probably sell Bitcoin at a very low price and lose it. I was going to be disappointed.

I would be outraged that the bitcoin price was not at the level I expected. I would wait for the anger to pass and I would make moves for it. I used to trade revenge. Do you think trading in anger would be really beneficial? Of course not. While the revenge trade can sometimes work, it often causes the trader to lose money.

I will explain what I have to do after attending this lesson.

I would try to stay calm. Since we are in the bull era, sometimes I thought I should take the dips as normal. I used to calmly follow the market movements without overbought. I would try to find out at what price Bitcoin would fall the most. I would buy some Bitcoin for the money I didn't need, at the lowest price it could have gone down. What we need to be careful about here is not overbought, buy Bitcoin at a low price, and do so with the money we don't need.

I would try to stay calm if the bitcoin price continues to drop a little more. I would not buy again. I would use critical levels of Stop loss, assuming we were going into a bear period. Maybe I will hurt by using stop loss, but this loss will not be too much.

B) 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.

I really don't want to remember that. It hurts me every time I think. I did margin trading before I learned the cryptocurrency market or even spot trading. This was crazy. The desire to win more and faster keeps me not making mistakes. Under normal circumstances, cryptocurrency trading is risky. Because price fluctuations happen sharply. In margin trading, on the other hand, the risk is multiplied. When your leverage is high, your risk increases at that rate. What I did in margin trading resulted in the opposite. I was a little unlucky, but I shouldn't have been doing business on something I didn't know. I should have avoided very risky trades like margin trading.

Which of the strategies discussed in this class you find the most useful for you? Why?
All of the topics covered in this lesson are very useful. The two subjects that interested me the most were the two.

FOMO (Fear Of Missing Out)

Fear of missing the opportunity. To be honest, this is a serious fear. We experience this fear in all areas of life. Not only in cryptocurrency trading. With this fear, we try to make mistakes. We buy crypto money too much above its real price and lose it. Therefore, when trading crypto money, one should not give in to the fear of missing the opportunity. Because opportunities do not end in cryptocurrency trading. We may miss an opportunity, but there are other opportunities waiting for us.

Not having set a stop loss

One of the issues that cryptocurrency traders should pay attention to is the issue of stop loss. People do not act consciously about the truth. It is against selling to the detriment of human nature. Human nature does not accept this. However, stop loss saves us from big losses. I always use stop loss both when I am in profit and when I am in loss. If I do not use stop loss, my loss will increase or my gain will continue to decrease. A trader who wants to be successful at risk management should make stop loss a habit. Stop loss is sometimes harmful but often useful.

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?

Indeed, Elon Musk and his companies have a big share in the rise of cryptocurrencies to good prices this year.

When Elon Musk tweets like this, the Bitcoin price continues to rise. What would I do before reading this lesson? I would buy Bitcoin without looking at the Bitcoin price, without technical analysis. I was also afraid of missing the opportunity, and I completed my transaction without wasting time. I would probably have bought Bitcoin at a very high price. Bitcoin would drop after a while, and I would lose. I was going to sell at a loss and I would be in a bad mood.

Even though I had enough Bitcoin in my account, I would overbought. I would do this by going out and borrowing money from someone or trying to get a loan. It is very dangerous to trade cryptocurrencies with the money we need.

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

Now let me explain what to do one by one.
First I would check if there is enough cash in my account. If there was not enough cash in my account, I would not make any transactions. I would not invest the money I need. Because I'm going to need that money. I would buy some Bitcoin if I had enough money in my account and the Bitcoin price has not yet risen significantly. If I bought bitcoins before, I would be careful not to buy too many bitcoins. Because this is overtaking and it makes me make a big mistake.

Let's say I bought some Bitcoin. I use stop loss thinking that bitcoin will drop too much. The stop loss will save me from losing too much.

I didn't care what people thought. I wouldn't have been afraid of missing the opportunity. Because there are too many cryptocurrencies and I would try to seize the opportunities in other cryptocurrencies.

CC: @fendit