I've noticed that many beginners in crypto make the same mistake — they buy a coin and just wait for it to grow. The result? They get stuck in a position for weeks or months, wasting time and nerves. And it's all because they don't consider profit as your actual target profit, which you should set before entering the trade.

Profit isn't just a number in your head. It's a clear goal that helps you understand exactly when to exit the position. When you know the price at which you'll achieve the desired percentage of profit, you avoid two extremes: holding the position for too long and closing too early.

How does this work in practice? The formula is simple: target price equals entry price multiplied by one plus the profit percentage divided by 100. It sounds complicated, but in reality, it's straightforward.

Take an example. You bought a coin at one dollar and want a 0.5% profit. Multiply 1,000 by 1.005 — you get 1.005. Set your sell order at this price. Another example: you entered at 0.328, aiming for a 0.6% profit. Calculate: 0.328 multiplied by 1.006 equals approximately 0.33. Exit at this level.

Now, the main question — what profit percentage is considered optimal? If you want to avoid hanging in a position, look at a range of 0.3–0.6%. If the coin is volatile, you can try 0.7–1.0%. Above 1.5% is already high risk, especially when the market isn't trending upward. You might not reach the target price and end up in a loss.

Why bother calculating this at all? Because too small a profit won't cover exchange fees, and too large a profit might be impossible to reach. Remember, the fee is usually about 0.1% for entry and 0.1% for exit. Totaling 0.2%. So, the profit should be at least more than 0.2% to break even. If you set a 0.5% target, your net profit after fees will be about 0.3%.

Many think trading is about intuition and luck. In reality, it's math. It's better to make five trades with 0.5% profit each than one with 5% that you might not reach. Always calculate your profit before entering — don’t guess. It's like driving in an unfamiliar city without a navigator — sooner or later, you'll get lost.

By the way, now is a good time to practice. BTC stays above 69.6K with a 3.49% increase, ETH at around 2.14K with a 3.96% rise, BNB shows 606.60 with a 2.58% gain. On Gate, you can practice calculating profit based on real quotes and see how it works in live trading.