Musings of a curious developer 📖


I have been in the blockchain industry since 2017 and have seen a lot of ups and downs. I used to think that I was a risk taker until the first bear market happened and I lost almost everything. You'd think that one would learn about risk management after going through such an ordeal but unfortunately, not for me.

Greed got the better of me. As of today, I am still profitable but I have also made substantial losses in my unrealised profits. Basic risk management 101 tells you not to have all your eggs in 1 basket and to define price levels where you'd cut losses but I was greedy and blind.

I thought I knew about the project that I was investing in but I did not, at least not well enough. On hindsight, there were a lot of things I could have done better:

  1. understanding who controls the market, the team and community
  2. automated stop losses
  3. not touching my reserve funds
  4. managing my risks etc.

But you know, no point crying over split milk. Things could have turned out very differently but it could have also turned out a lot worse. I'm still in a very favourable position and I should be grateful for that.

This has been one hell of a rollercoaster. I made a huge bet on STAKE outperforming ETH and lost. If you lose a trade, you lose money, its as a simple as that. Since I don't want to keep living in fear and anxiety of the performance of my shitcoin, I have decided to cut my losses.

I will be selling everything on the next few pumps. I'm hoping for at least an average price of 25-30 but anything more than 20 is good enough for me really. This will still be enough money to not have to worry about paying off the house and I can focus on earning money elsewhere!

Moving forward, I will not be investing anymore in this bull run. I think it will be ending soon and don't want to be caught pants down when that happens. I will still be lending my funds out to make some passive income because the returns are actually quite decent!

That said however, I will be preparing myself for the next bull run. I want to learn to be a better at managing my risks and automating more of my trades. Using a DEX is not an excuse not to write a bot that can automatically stop loss for you. Not having a server is not an excuse either. What's the cost of a 10k server if cutting losses can save you 50k? You have no excuses to be repeating the same mistake a third time.

Just one last quick note to self - Understand what you're actually doing. For example, if you're looking at the price of a token in terms of ETH and you buy said token with ETH, it means you are long token, short ETH aka you are betting that the token will appreciate faster than that of ETH. If that's not what your intentions are then you're better off looking at the token/USD and ETH/USD price instead. You only have so much luck so don't squander it.

Anyway, thank you life for giving me this opportunity to learn so much about myself. Simon, I wish you all the best for your next cycle.