Recently, I’ve gained a new understanding of trading $1000LUNC contracts—shorting is just too easy to get liquidated.

Why? For altcoins, market makers can pump the price at almost zero cost. You’ll notice the price just won’t go down. At this point, you can simply set low-priced longs, even maxing out leverage. The key is to set a stop loss—this is basically free money.

I used to be a staunch bear, but recently I’ve realized: longs have stop loss protection, shorts don’t. Short sellers can only keep adding to their position to raise their average entry price, sinking deeper and deeper. Now that I’ve switched to going long, the profit experience is completely different.

However, I wouldn’t recommend chasing longs at this level—it’s gone up so much, a correction is due. My personal rule is to exit when I double my money—don’t get greedy. These opportunities come up every day, because short sellers will keep adding to their positions on the way up—if they don’t, they get liquidated, so they have to raise their average entry price to save themselves.

Once you understand the logic of the game between market makers and short sellers, your trading strategy becomes much clearer.