I saw how many beginner traders just buy a coin and wait for it to grow. Then they hang in the position for weeks. The thing is, profit is not just a desire to earn — it’s a specific goal that needs to be calculated before entering the trade.

Profit is the percentage gain at which you exit the position. Sounds simple, but many ignore this basic rule. If you bought a coin and want to sell it for more, you need to know in advance at what price you will achieve the desired profit. Otherwise, you risk staying in the trade for months.

The formula is straightforward: Target price = Entry price × (1 + Profit in percentage / 100). Let’s look at examples. Bought a coin at 1.000 USDT, want 0.5% profit. The target price will be 1.000 × 1.005 = 1.005 USDT. Place a sell order at this price and wait.

Another example: entered at 0.328, aiming for 0.6% profit. Calculations: 0.328 × 1.006 = 0.330 USDT. Exit at this price.

What profit should you choose? If you don’t want to hang in the coin — 0.3–0.6% is the minimum. If the coin is volatile — you can take 0.7–1.0%. Above 1.5% — it’s already risky, as you might not reach the target price, especially if the market isn’t rising.

Why is this necessary? You clearly understand when to close the position. You earn small but frequent profits. Gradually, you increase your capital. This works better than trying to catch big moves.

Important point: exchange fee is usually 0.1% for entry and 0.1% for exit. Total 0.2%. Therefore, profit must be higher than 0.2%, otherwise you will just break even. If you set it at 0.5%, your net profit after fees will be about 0.3%.

What happens if you calculate profit incorrectly? Too small — it may not cover the fee. Too large — you stay in the loss for days, waiting for a price that may never come. Not calculating at all — it’s like going to an unfamiliar city without a navigator.

Here are the current prices: BTC trades around 82.21K with +1.78% in 24 hours, ETH at 2.41K +1.52%, BNB at 647.50 +2.99%. At these prices, you can calculate profit using the same scheme.

The simple conclusion: always calculate profit before entering. Don’t guess — use the formula. Better five trades at 0.5% than one at 5% that you won’t reach. Trading is math, not intuition.