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Listen, let's figure out what profit really is and why you need to think about it BEFORE you press the "buy" button. Profit is simply your target price at which you close the position and take your gains. Nothing more. It’s your pre-set goal that you calculate before entering a trade.
See, what’s the mistake most beginners make? They buy a coin and then wait for it to go up. They wait a week, a month, and then either take a loss or get stuck in the position. Profit is a tool that protects you from this. When you know in advance at what price you will sell — you avoid emotional decisions.
Profit helps you clearly understand when to exit, earn small but regular profits, and accumulate either coins or dollars — depending on your strategy.
Now, about the calculations. It’s simple: the target price equals the entry price multiplied by one plus the profit percentage divided by one hundred. It sounds complicated, but in practice, it’s straightforward.
Here’s a specific example. You bought a coin at 1000 USDT and want to earn 0.5% profit. You calculate: 1000 multiplied by 1.005, which equals 1005. That’s the price at which you place a sell order. Done.
Another example. You entered at 0.328 USDT, want a 0.6% profit. The target price: 0.328 multiplied by 1.006, which is approximately 0.330. You exit at this level.
And what profit size should you choose? If you don’t want to stay in the asset for long — set 0.3–0.6%. If the coin is volatile — you can go for 0.7–1.0%. Above 1.5% is already high risk, meaning you might never reach that price, especially if the market isn’t in an uptrend.
What happens if the profit target is wrong? Too small — it might not cover the exchange fee. Too large — you might simply not reach it and end up in the red. Not calculating at all — it’s like going to an unfamiliar city without GPS.
One important detail: the fee is usually about 0.1% at entry and 0.1% at exit, totaling 0.2%. So, the profit should be higher than 0.2% to at least break even. If you set it at 0.5%, your net profit after fees will be about 0.3%.
The simple conclusion: always calculate your profit BEFORE the trade, not by guesswork, but with a formula. Better to make five trades with 0.5% profit each than one attempt to earn 5% that you might never reach. Trading is math, not guessing. When you know at what price to exit, you avoid half of the mistakes beginners make.