When the funding rate hits an extreme, I start to get itchy and want to take the opposite position, but honestly most of the time I still prefer to avoid the volatility... If the rate can become extreme to that extent, it's often not "free money," but rather someone pushing hard in a certain direction, and the move can last longer than you can hold.

It's okay to want to do it, but my bottom line is: keep the position small enough to treat it as paying tuition, set stop-losses properly, and don't expect to maximize gains.
Recently, the new L1/L2 incentives to boost TVL feel quite similar, everyone is shouting for excitement, and veteran users complain "mining, transferring, selling" isn't without reason. When emotions run high, slippage and routing start to be problematic.
If I could only keep one habit: always check the slippage and routing before each swap.