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Let's figure out what profit is in trading. Many beginners get confused about this, but in reality, it's simple — it's your target profit, which you determine in advance before entering a position.
Profit is not magic or fortune-telling. It's a specific percentage at which you exit the trade. Bought a coin, calculated at what price you'll get the desired income, and set a sell order. It sounds straightforward, but for some reason, half of traders don't do this.
I've seen many beginners who just buy and wait. Wait a day, a week, a month — hang in the position. And then they wonder why the money isn't growing. Without a clear profit plan, you're just spinning your wheels. Profit helps you exit on time, earn small frequent profits, and gradually grow your capital. It works — proven.
The formula is simple: the target price equals the entry price multiplied by (1 + desired profit percentage divided by 100). But it's better to show with examples.
Imagine you bought a coin for 1.000 USDT and want a 0.5% profit. Calculating: 1.000 multiplied by 1.005, equals 1.005 USDT. Set your order at this price. Simple and clear.
If your entry was at 0.328, and you're aiming for 0.6% — multiply 0.328 by 1.006, which is about 0.330. Exit at this level.
Now the main question — what profit is considered normal? If you want to avoid long hang-ups, set 0.3–0.6%. For volatile coins, you can try 0.7–1.0%. Above 1.5% is already high risk, meaning you might not reach the desired price, especially when the market moves sideways.
What’s important to remember about fees? On most exchanges, it's about 0.1% on entry and 0.1% on exit, totaling 0.2%. So, your 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%.
If the profit is too small — it might not even cover the fees. If it's too large — you simply won't reach it and stay in a loss for days. Without a plan, it's like driving in an unfamiliar city without a navigator — pure chaos.
The simple conclusion: always calculate your profit before entering. Don't guess; use the formula. Better five trades with 0.5% profit each than one with 5% that you'll never reach. Crypto trading is math, not intuition. Once you understand this simple logic, your results will start to improve.