I noticed that many people in crypto lose money simply because they don't understand what profit is and how to calculate it correctly. Let's figure it out in simple words so that everyone can understand.

Profit, in simple terms, is your target gain. When you enter a position, you should decide in advance at what percentage of profit you will exit. It's not some complicated science, just a plan: I buy, I exit here, and I take my money.

Why is this necessary? Because without a plan, you risk getting stuck in a coin for a week or a month waiting for a bigger profit. And then the price drops, and you're left with a loss. Proper profit calculation helps avoid this — you clearly know your exit point, earn small but regular percentages, and gradually grow your capital.

How to calculate profit? The formula is very simple. The target price equals the entry price multiplied by (1 plus profit percentage divided by 100). It sounds complicated, but in practice, it's straightforward.

Here's a real example. Suppose you bought a coin for 1000 USDT and decided to exit at 0.5% profit. Let's calculate: 1000 × (1 + 0.5 / 100) = 1000 × 1.005 = 1005 USDT. At this price, you place a sell order and forget about the trade.

Another example. The coin costs 0.328 USDT, and you want a 0.6% profit. Target price: 0.328 × 1.006 = 0.330 USDT. You exit at this level.

Now the main question — what profit to choose? If you don't want your position to stay open for a long time, set it at 0.3–0.6%. If the coin is wild and volatile, you can try 0.7–1.0%. But above 1.5% is already high risk, especially if the market moves sideways.

What happens if you don't calculate profit? If it's too small — it might not cover the exchange fee (which is about 0.1% for entry and 0.1% for exit, totaling 0.2%). If it's too large — you just sit in loss for several days waiting for that profit. And if you don't calculate at all — it's like going to an unfamiliar city without a navigator, clear?

An important point about fees. On most exchanges, you pay 0.1% at entry and 0.1% at exit. So, your profit should be at least higher than 0.2% just to break even. If you set it at 0.5%, your net profit after fees will be about 0.3%. This must be taken into account.

My simple advice: always calculate profit before entering a position. Don't guess, don't rely on intuition — use the formula. It's better to make five trades with 0.5% profit each than to wait for one big trade at 5%, which may never happen. Remember, trading is math, not guessing.