#Morpho $MORPHO @Morpho Labs 🦋
After years of struggling in the crypto world, I learned one principle: what truly makes you grow is never the euphoria during profitable times, but the clarity after losses. Today, I want to share a mistake I made during the Morpho event week—though the loss wasn't significant, it taught me three trading principles that will benefit me for a lifetime.
---
That suffocating night
The incident occurred during a completely ordinary event week. As usual, I adjusted the target LTV from 60% to 55% in advance and set a 30-minute early warning—everything seemed to be under control.
However, when the network started to congest 20 minutes before the macro data release, I made a fatal mistake: to wait for a better price, I chose to "wait a bit more." This seemingly insignificant decision led me to experience a heart-pounding moment of health dropping two and a half levels in the next half hour.
In the end, although I avoided liquidation, to urgently redeem in congestion, I paid a high cost in slippage and gas fees, and my profits were significantly eroded.
The first iron rule: during congestion, execution trumps price.
This lesson made me understand: during network congestion, pursuing optimal execution is far more important than pursuing optimal prices.
In the ecosystem of Morpho, order is everything. The correct operation order should be: hedge to lock in risks first, then redeem to restore buffers. If you reverse this order, you may make the worst decisions at the most critical bandwidth moments, ultimately paying double the price.
Now, I have written this operation order on the front page of the trading log; it is no longer just a line of text, but a barrier that helps me resist emotional impulses.
The second iron rule: act earlier and more decisively before the event date.
I originally thought that a 5-point reduction in LTV was conservative enough, but I underestimated the impact of the double whammy of "network congestion + oracle updates."
Now I will complete parameter adjustments two hours before the event date, directly reducing LTV by 7 points and setting early warnings 45 minutes in advance. Yes, this will sacrifice some paper gains, but the execution space and inner peace gained are far more precious than that annualized return.
Morpho's transparency makes this conservative strategy particularly worthwhile — you can clearly see how this small sacrifice helps you avoid huge fluctuations.
The third iron rule: backup routes must be written down; otherwise, they are equivalent to nonexistent.
That night I could have switched to the backup deep funding pool, but because I didn't specify the switching conditions, I hesitated and missed the best opportunity.
Now, a line of text is always stuck on my trading interface: "If the price difference >0.6% or expected wait >3 minutes, switch immediately, do not look back after switching." The last three words "do not look back" are especially important — they can prevent you from returning to a bad path driven by emotions.
Wisdom distilled from mistakes.
Looking back, that night I actually did two things right: I didn't blindly increase my position when health was dropping, and I didn't perform complex operations during peak congestion. But the two mistakes — waiting for a better price and making temporary decisions — were enough to erase the value of all the correct decisions.
Now I have added three actions to my SOP:
- The "one-click hedge" on the event date is placed in the most convenient position.
- The retreat order is marked with "batch priority during congestion".
- The threshold for the backup route is noted with "conditions triggered execute immediately."
Losses are the best teacher.
I recorded the numbers from this loss in my dedicated "error ledger." The amount is not large, but it constantly reminds me: the data provided by Morpho is always honest, and the only thing that can deceive you is your own sense of luck.
In the world of trading, luck has never been a strategy; only rules are. The next time the event week arrives, I will complete adjustments two hours in advance, set early warnings 45 minutes ahead, reduce LTV by 7 points, and strictly adhere to the discipline of hedging before redeeming, accepting batch operations calmly if necessary.
What is written on paper counts as a commitment, and what has been executed three times counts as a habit. This loss made me realize: on the street of Morpho, those who survive the longest are not the smartest people, but the most disciplined ones.
After all, true confidence does not come from "I think I will," but from "I have already done it." And this, perhaps, is the rite of passage that every trader must experience.
