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Profit, in simple words, is your target selling price that you calculate in advance.
It's not magic, not intuition, but plain mathematics.
When you enter a position, you should already know at what price you'll exit.
Why is this so important?
Beginners often make the same mistake — buy a coin and just sit, waiting for a miracle.
As a result, they get stuck in a position for weeks or even months.
Profit helps avoid this.
It gives you a clear guideline: when to exit, how often to take small profits, how to systematically grow your capital.
The formula is straightforward.
Take the entry price, multiply by (1 + desired profit percentage / 100).
This gives the target price.
For example, you bought a coin for 1000 USDT, want 0.5% profit — multiply 1000 by 1.005, you get 1005.
Place a sell order and forget about it.
Or another example: entered at 0.328, aiming for 0.6% — multiply by 1.006, exit at 0.330.
Now about sizes.
If you don't want to stay stuck in a position — set 0.3-0.6%.
Volatile coin? You can try 0.7-1.0%.
Above 1.5% — that’s already high risk, especially if the market is not in an uptrend.
You might just not reach the target price and end up in a loss.
What else to consider?
Commission.
On most exchanges, it's about 0.1% on entry and 0.1% on exit, totaling 0.2%.
That means your profit should be at least more than 0.2%, otherwise you won't break even.
If you set 0.5%, your net profit after commission will be about 0.3%.
What happens if you calculate incorrectly?
Too small a profit may not cover the commission at all.
Too large — you'll wait for a target price that may never come, and the market will start falling.
Not calculating profit at all — it's like driving in an unfamiliar city without GPS.
The simple conclusion: always, before each trade, calculate using the formula.
Don’t guess blindly.
It's better to make five trades with 0.5% profit each than to wait for one big trade of 5%, which may never happen.
Trading is not art or luck.
It's mathematics and discipline.