I've noticed that many newcomers in crypto don't understand one basic thing — profit isn't just "when the price goes up," but a specific profit target that needs to be calculated in advance. Let's talk about that.



Profit is essentially the percentage at which you close your position and take your gains. It sounds simple, but that's where most people get stuck. Someone buys a coin and just... waits. A week, a month, maybe longer. That's the wrong approach.

Why plan your profit in advance? Because this way, you don't stay stuck in a trade, can make frequent small profits, and gradually grow your capital. Instead of one big trade that you might not even see happen, it's better to make 5-10 small ones.

Now, to the most important part — how to calculate. The formula is very simple: Target Price = Entry Price multiplied by (1 plus Profit in percentage divided by 100). It sounds more complicated than it actually is.

Let's look at specific examples. Suppose you bought a coin for $1 and want to take a 0.5% profit. Calculations: 1 multiplied by 1.005 = 1.005. Set your sell order at this price. Simple and clear.

Second example — bought at $0.328, target profit 0.6%. Multiply: 0.328 times 1.006 ≈ 0.330. Close at this level.

What profit should you choose? If you don't want to wait long — set 0.3-0.6%. If the coin is volatile — you can go for 0.7-1%. Above 1.5% is already high risk of not reaching your target price, especially when the market isn't in the best shape.

An important point here is about fees. On most exchanges, it's about 0.1% for entry and 0.1% for exit. Total 0.2%. So, your profit needs to be at least more than 0.2%, otherwise you'll just cover the fees and make nothing. If you set it at 0.5%, your net profit after fees will be about 0.3%.

What happens if you calculate profit incorrectly? Too small — fees eat up all your earnings. Too large — you just won't reach it, and stay in a loss for several days. Not calculating at all — it's like going to an unfamiliar city without a GPS, only the result is much worse.

Conclusion: profit isn't magic, it's math. Always calculate your exit target before opening a position. Don't rely on intuition. It's better to make 5 trades with 0.5% profit each than to wait for one 5% trade that may never happen. Remember — trading is about calculations, not guessing.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin