Let's understand what profit is and why it's the first thing every trader should know. Profit is not just a desire to earn; it's a specific profit target in percentage terms that you set before entering a trade. It sounds simple, but most beginners make mistakes right here.

Many start by buying a coin and just waiting for it to go up. The result? They get stuck in a position for a week, a month, or even longer. When you plan your profit in advance, you avoid this trap. You know exactly at what price to exit. This helps you earn small but frequent profits, which over time add up to a significant result.

How to calculate profit? It's simple — use this formula:

Target Price = Entry Price × (1 + (Profit in percentage / 100))

Let's take a real example. You bought a coin at 1.000 USDT and want to earn a 0.5% profit. Then the target price = 1.000 × 1.005 = 1.005 USDT. You place a sell order at this price and wait. Simple? Yes. But it works.

Another example — bought at 0.328 and need a 0.6% profit. Calculation: 0.328 × 1.006 = 0.32997, rounded to 0.330. That’s your target exit price.

Now the main question — what profit target should you choose? If you want to avoid holding the coin for too long and trade frequently, aim for 0.3–0.6%. If the coin is volatile and can jump sharply, you can set 0.7–1.0%. Above 1.5% is already high risk of not reaching the target, especially if the market is not trending.

Why is this important? Because exchanges charge a fee — about 0.1% for entry and 0.1% for exit, totaling 0.2%. If you set your profit at 0.2% or less, you’ll just cover the fees and break even. Your profit needs to be higher than the fee so you actually make money. With a 0.5% profit, your net profit after fees will be about 0.3%.

What happens if you calculate profit incorrectly? If it’s too small — the fee will eat up all your profit. If it’s too large — you might wait days and end up in a loss. If you don’t calculate at all and trade by guesswork — it’s like driving in an unfamiliar city without a GPS; sooner or later, you’ll get lost.

The main takeaway is simple: always calculate your profit before entering a trade. Use the formula, don’t rely on intuition. It’s better to make 5 trades with 0.5% profit each than one with 5% that you’ll never reach. Trading is math, and the sooner you understand this, the faster you’ll start earning consistently.