Updated on 2025.4.19
A few trading principles that can be used for shorting
1. Round numbers are Shearing points.
2. Avoid shorting low market cap projects
3. Use hot events to short
4. Buy the rumor, sell the news
——————
Updated on 2025.3.28
The timing of the contract funding fees is 0, 4, 8, 12, 16, 20. I prefer to open a short position 1 minute after these times.
Do not short at night, especially on the BSC chain. CZ likes to tweet and manipulate the market at night.
—————
On 2025.2.12, I shorted right after the layer went to contracts and made a little profit, but ended up losing it all later. Losing money leads to research, so how should new coins be shorted?
The first wave of selling is certain, but you can't short on spot. By the time contracts are listed, the price has already dropped a lot, at a midpoint price. At this time, would you short or go long?
If there's a big difference between the spot and contract prices, how would you judge the direction?
Should we still wait?
If it only listed on a small exchange, there will still be positive news for listing on larger exchanges. If you short at that time, it's likely to get blown up when the announcement of listing on major exchanges comes out. In this case, it might be better to short after listing on Binance since Binance is the top exchange.
If it went to a small exchange first instead of directly listing on Binance, then this coin might have potential. After a brief dip on the spot market when it opened, there's a good chance it will rise. If it dips and then contracts on Binance, would you short or go long?
Yesterday, after the layer opened, it dropped to about 0.8, then went to contracts, dropped to about 0.7, and then surged to about 1.3. If you don't run after the first wave, it could blow up. Holding positions could be very painful.
If you think new coins will definitely drop and should be shorted, you will lose money. Therefore, coins that can directly list on Binance should not be rushed to short.
After listing on Binance, it's not all good news; there could be another positive factor, which is staking. If staking offers you 500% returns, many people will stake, which could cause a price surge. This might lead to a blow-up.
Today it seems there was a staking announcement from Sesame or somewhere, which gave the layer a boost.
So waiting a while after staking is released before shorting would be more stable.
Actually, would it be better to wait until other new coins take away the hype and attract funds before coming back to short?
Yesterday, two hours before the layer opened for trading, many coins dropped, especially tst (a new coin from a few days ago), which fell significantly. So, when new coins are released, would it be better to short old coins?
What else could blow up my short position?
I really can't help but short new coins, especially those coins issued by PUA-like projects.
It reminds me that many amazing projects with airdropped coins have been falling continuously; I really have no confidence in holding new coins.
After all, selling these new coins that haven't been built up for a long time for BTC is a better choice.
Updated on 2025.3.2
Large token unlocks can also crash the market.
Or wait?
The collapse of trust leads to the strongest bear market.
Updated on 2025.3.5
The founder going to jail can also lead to a crash, like with previous SOL and TON.
Updated on 2025.3.27
After the new issue announcement is made:
1. Buy BNB on the spot for new issues, or go long BNB for a while before closing and switching to BNB on the spot.
2. Short a round of new issue coins.
New issue has started:
1. Store BNB for new issues
2. Short BNB
The new issue has ended:
1. Close the BNB short position.
2. Sell the airdrop immediately when it arrives.
3. For new coins, short once contracts are listed on Binance.