I used to think that unrealized losses were just "on paper," but then every night my mind automatically reviews: Should I cut, or should I wait a bit longer? The more I think about it, the more anxious I become. Unrealized gains are actually less noisy; maybe because when I make a profit, I just consider it luck, but when I lose, it feels like being slapped in the face, more painfully and specifically. To put it simply, loss aversion causes small issues to be blown up into black holes.

Now my approach is pretty simple: keep my position smaller, and before entering, write down a sentence like "The maximum loss I can sleep through," and accept it when I hit that line. Recently, with all those testnet incentives, earning points, and guessing whether the mainnet will issue tokens, I get itchy too, but thinking that no token issuance means all the effort was in vain and just wasting time, I immediately calm down... Anyway, positions that keep me awake at night are basically ones I shouldn’t open.