$BTC #

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: It is the positive difference between the buying price and the selling price. For example: You bought a coin for $100 and sold it for $150, so your profit is $50.

Loss: It is the opposite, meaning if you sell at a price lower than the buying price.

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🎯 Second: Reasons for profits in trading on Binance

1. Analyzing the market well

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 orders in advance.

4. Continuous learning

Following daily news and 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. Overuse of leverage

Leverage multiplies profits, but it also multiplies losses quickly.

3. Being affected by emotions (fear or greed)

Selling quickly at the first drop, or holding onto a losing coin for too long.