But instead of ππ, I flew too close to the sun and came crashing back down to π
At the end of 2021 with my portfolio the highest it had ever been, I got cocky, I showed my mum my number and she urged me to "take some out"...
But why would I do that? $LUNA to 1000 was not a meme. We were just getting started...
This episode has been a valuable learning experience π€
Obviously I have regrets. But without going through this death spiral, I wouldn't have fully appreciated...
1. The necessity of sensible risk management: don't put all my eggs in one basket.
2. Taking profits into cash money in a traditional bank account.
Even if I sold at the 2021 ATH, even if I had withdrawn to my bank, I know I would have gone back into $LUNA when it dipped 50%
Even if I had sold again at 2022 ATH I would have kept it in $UST in @anchor_protocol so in a funked up way, I was destined to lose it all to realise my investment thesis was utterly naive π³
Lots of #LUNAtics have gone through a similar experience π€―
Now when I join LP pools, I typically join TOKEN - $UST pools, e.g. $MINE - $UST and more recently $Psi - $UST
These pools offer high APRs which is one of the main reasons I invest in them, as something I learned from @Shigeo808 is that I want to generate cashflow.
As an example (figures for illustrative purposes only): If I invested $1,000 in the $Psi - $UST pool when $Psi was at $0.10 and assuming interest rate of 330% APR, I would be making $9/day in interest.
If $Psi doubles in price to $0.20, the impermanent loss would be less...