Trading profits and losses on the Binance platform depend on several important factors. Here is a simplified explanation of profits and losses, and the main reasons that affect them:
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📈 First: What are profits and losses in trading?
Profit: is the positive difference between the purchase price and the selling price. For example: you bought a coin at a price of 100 dollars and sold it at a price of 150, so your profit is 50 dollars.
Loss: is the opposite, meaning if you sold at a price lower than the purchase price.
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🎯 Second: Reasons for profits in trading on Binance
1. Proper market analysis
Using technical analysis (charts, candlesticks, indicators like RSI and MACD).
Fundamental analysis (news, partnerships, project developments).
2. Entering at the right time
Buying at the lows (low price) and selling at the highs (high price).
3. Proper capital management
Using a small portion of capital in each trade.
Setting stop-loss and take-profit levels in advance.
4. Continuous learning
Following news and daily updates in the market.
Understanding market psychology (fear and greed).
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🔻 Third: Reasons for losses on Binance
1. Lack of a clear trading plan
Random entry without study or analysis.
2. Excessive use of leverage
Leverage multiplies profits, but it also quickly multiplies losses.
3. Being affected by emotions (fear or greed)
Selling quickly at the first drop, or holding onto a losing coin for too long.
