What is Profit?
Profit is the desired percentage of profit, at which point you exit the trade.
Simply put, it's your earnings goal that you set for each coin purchase.
If you bought the coin and want to sell it for more — you must calculate in advance what price will give you the desired profit.
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Why calculate Profit?
Many beginners make the mistake of just buying a coin and "waiting for it to grow". But you can get stuck in a trade for weeks or even months. Profit helps:
Clearly understand when to exit the trade;
Earn small but frequent profits;
Increase either the amount of coins or dollars, depending on the strategy.
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How to correctly calculate Profit?
Profit is calculated as a percentage of the entry price. The formula is simple:
Target price = Entry price × (1 + Profit in percentage / 100)
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Examples of calculations:
Example 1. Do you want to earn 0.5% profit:
Bought the coin at: 1.000 USDT
Want Profit: 0.5%
Target price = 1.000 × (1 + 0.5 / 100) = 1.000 × 1.005 = 1.005 USDT
So, the sell order should be set at 1.005.
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Example 2. Bought at 0.328 and want 0.6% profit:
Entry price: 0.328 USDT
Profit: 0.6%
Target price = 0.328 × 1.006 = 0.32997 ≈ 0.330
You should exit the trade at the price of 0.330.
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What Profit to calculate?
If you want to avoid getting stuck in the coin — aim for Profit of 0.3–0.6%
If the coin is highly volatile — you can aim for 0.7–1.0%
Above 1.5% — high risk of not waiting, especially if the market is not rising.
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What does incorrect Profit lead to?
Too low — may not cover the commission (for example, less than 0.2%)
Too high — you might not wait for it and end up in loss for several days.
Not calculating at all — it's like driving to an unfamiliar city without a navigator.
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What else is important to remember?
The exchange commission is approximately 0.1% for entry and 0.1% for exit (a total of 0.2%).
Therefore, Profit must be greater than 0.2% to at least break even.
If you set 0.5% — your net profit will be about 0.3% after commission.
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Conclusion:
Always calculate Profit before the trade.
Don't set it "by eye" — calculate using the formula.
Better to make 5 trades of 0.5% than one of 5% that you won't wait for.
Trading is math, not intuition.
