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I've noticed that many beginners don't understand what profit is and how to calculate it correctly. This is one of the main mistakes that lead people to stay stuck in positions for weeks.
Profit is simply your target profit percentage at which you exit the trade. Nothing more. You buy a coin and decide in advance: this is the price at which I will exit and take profit. That's it.
Why is this so important? Because without it, you just sit and wait. And waiting can take a long time. Very long. With a clear profit target, you know exactly when to exit, often making small gains instead of chasing one big trade, and gradually building your capital.
How is it calculated? It's very simple. Take the entry price, multiply it by one plus your profit percentage divided by 100. The formula: Target Price = Entry Price × (1 + Profit% / 100)
Let me give some examples to make it clear. Suppose you bought a coin for 1 USDT and want a 0.5% profit. Calculate: 1 × 1.005 = 1.005. Set a sell order at 1.005 — and you're done.
Second example. You entered a position at 0.328, aiming for a 0.6% profit. Target price: 0.328 × 1.006 = 0.330. Exit at this price.
Now the main question: what profit size should you set? If you don't want to stay stuck — choose 0.3-0.6%. If the coin is volatile — you can go for 0.7-1.0%. Above 1.5% is already risky, especially if the market is not trending.
Be careful with small profits. Exchange fees are about 0.1% for entry, and another 0.1% for exit. Total of 0.2% goes to fees. If you set a profit less than 0.2% — it doesn't make sense at all; you'll end up in the negative. With a 0.5% profit, your net gain will be about 0.3% after all fees.
What happens if your profit target is wrong? Too small — fees will eat into your profit. Too large — you wait, wait, and the price doesn't reach it, and you end up in a loss for several days. Not calculating at all is like going to an unfamiliar city without a navigator.
The simple conclusion: always calculate your profit before entering. Using the formula, not guessing. Better five trades with 0.5% profit each than one 5% profit trade that you won't reach. Trading is math, not intuition. Keep that in mind.