There's something about Magic Dragon that just doesn't seem right. Collectors have called it a pirate original, but it comes across more like a hack or an unlicensed game by one of the big unlicensed companies, such as Sachen or Hacker International.
Magic Dragon is a shooter, and some have pointed out that it the label illustration is similar to Konami's Gradius. It plays much like Gradius or Salamander, where you're a little craft that flies rightward and shoots at whatever enters the screen. That's the whole game, as is typical of that type of shooter.
Magic Dragon is a great game, but because few people know about it, it sells for cheap. Though it goes for less than $10 -- if you can find it -- you shouldn't hesitate to pay up to $20 for it.