Floating losses really can be more unsettling than floating gains and keep people awake at night. To be honest, it’s not about the size of the numbers, but the persistent sting of “Did I do something wrong?” When you make some unrealized profit, your brain defaults to thinking it’s just luck; but once there’s a drawdown, it immediately becomes your responsibility, and you can’t help but want to review every single candlestick.

It’s even more obvious when doing small pools and market making: even when parameters are set according to plan, a sudden impermanent loss makes you start doubting, “Did I choose the wrong range? Are the fees actually too high to cover?” The more you look, the more anxious you become. Conversely, when you’re making a profit, people automatically treat risk as nonexistent.

Recently, retail traders complaining about miners/validators capturing MEV and unfair ordering reflect the same mindset: when losing, they really want to find an “explainable reason,” as if finding one would bring peace of mind. But the market doesn’t owe explanations. The best approach is to set your position, range, and stop-loss firmly and not rely on emotional patches. That’s all for now.