Long vs Short: Strategic Decision Framework

When to Go Long

Going long means you profit when the price goes up. Consider longs when: the market structure shows higher highs and higher lows, funding rates are negative (you get paid to hold), the overall macro trend is bullish, and there is significant overhead liquidity to target.

When to Go Short

Going short means you profit when the price goes down. Consider shorts when: the market structure shows lower highs and lower lows, funding rates are positive (you get paid to hold), there is a clear resistance level with stop-loss above it, or the macro trend is bearish.

Common Mistakes

• Counter-trend trading — Fighting the trend without confirmation
• Ignoring funding — Paying 0.01% every 8 hours adds up fast
• No stop-loss — Hoping a losing trade will reverse is a recipe for liquidation