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Listen, I’ve noticed that many newcomers in crypto just buy a coin and sit on it, waiting for a miracle. Then they wonder why they’re stuck in the same position for months. The key is understanding that profit isn’t just a dream of making big money; it’s a specific goal you set **BEFORE** you buy.
Profit is essentially your target percentage of gain. You decide in advance: I’ll buy here, and sell there. That’s it. No guessing. Many traders make a critical mistake — they buy without a plan. It’s like going to an unfamiliar city without a GPS. You could get lost for a week.
Why is this important? Because profit helps you clearly understand when it’s time to exit. You won’t sit in a loss hoping that “maybe it will rise tomorrow.” Instead, you make small but frequent profits. This works much better than waiting for one big jump.
Now, about the calculations. The formula is as simple as two fingers. The target price equals the entry price multiplied by (1 plus the profit percentage divided by 100). Sounds complicated? In practice, it’s not.
Here’s a real example. Bought a coin at 1.000 USDT. Want to earn 0.5%. I calculate: 1.000 multiplied by 1.005, which equals 1.005 USDT. That’s the price at which I place a sell order. Simple and clear.
Another case. Entered at 0.328 USDT, target profit 0.6%. I calculate: 0.328 multiplied by 1.006, which is approximately 0.330. I exit at this level.
What profit should you choose? If you don’t want to sit around — aim for 0.3–0.6%. If the coin is wild and volatile — you can allow yourself 0.7–1.0%. Above 1.5% is already risky, especially if the market isn’t in a good mood. You might just not reach that level and end up in the red.
What could go wrong? If the profit target is too small — it might not cover the fees. Remember, exchanges charge about 0.1% for entry and 0.1% for exit. Total of 0.2%. So, your profit should be at least 0.2% to break even. If you set it at 0.5%, your net profit after fees will be roughly 0.3%.
If the profit target is too big — you risk not reaching it at all. You could sit for days in a loss, waiting for that level. It kills your psychology and strategy.
My simple advice: always calculate your profit **BEFORE** entering a position. Don’t guess, don’t rely on intuition. Use the formula, and that’s it. It’s better to make five small profitable trades of 0.5% each than to wait for one big 5% move that might never happen.
Trading isn’t about intuition or luck. It’s math. The more you calculate, the more you earn. Plain and simple.