I want to share with you a conclusion I've come to after years of navigating the crypto market.

Recently, I saw a certain coin surge by 300% in just two days, instantly climbing to the top of the gainers list. My first reaction was—this must be the peak. So I immediately placed a small short position. And what happened? The coin turned around and rose another 50%, causing my position to be liquidated on the spot.

Stories like this happen to me repeatedly, so often that I’ve lost count. After being in this market for so long, I’ve derived a seemingly simple but hard-earned truth: never short the coins on the gainers list, especially those with aggressive upward momentum.

This isn’t some textbook trading theory. It’s lessons learned with real money, soaked in blood.

**Why has the gainers list become a graveyard for shorts?**

The coins on the gainers list, which seem very tempting, are actually one trap after another for short sellers. Most of these coins are driven by market sentiment, rushing wildly. When a large number of retail investors chase the rally en masse, prices can easily drift out of rational bounds. Shorting at this point is like reaching out to catch a knife falling from a rooftop—the blade is facing up, and even if you don’t get cut, you’ll lose a chunk of flesh.

Another core issue is circulating supply. These coins are usually small-cap. Main players can easily push the price up. While you’re still debating whether it’s the top, they can just move a finger, and the entire market’s buy orders will be triggered. Shorts at this moment become sitting ducks.

Volatility and liquidity are also deadly weapons. What you see as a pullback might just be a normal shakeout during an upward move. Market conditions change in an instant, with fake breakouts and false breakdowns everywhere—impossible to defend against.

**The lessons I paid for**

In 2024, I suffered a deep loss once. A meme coin surged 400% in a single trading day. I looked at the candlestick chart and thought this was definitely the top, and shorting would be a sure win. But as soon as I opened my short, the coin surged another 40%. You can probably guess the rest—my stop-loss was hit hard, wiping out several months’ worth of gains.

There are many similar stories. The gainers list is like a huge vampire, draining the blood of those shorts who seem smart but are actually greedy.

I later realized that coins on the gainers list often reflect extreme market sentiment, not rational trading opportunities. The majority of participants chasing the rally are retail investors. As long as there’s enough buying pressure, prices can keep climbing, and logic almost ceases to matter.

So now? When I see coins on the gainers list running wild, I either completely avoid them or follow the trend of chasing the rally, but I will never bet against it.

This lesson has greatly changed my trading style. I’ve learned to respect market sentiment, rather than always trying to be the smart one. Sometimes, market “irrationality” can last longer than your account can survive.