Trading profits and losses on the Binance platform depend on several important factors. Here's 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: The positive difference between the buying price and the selling price. For example: If you buy a coin for $100 and sell it for $150, your profit is $50.
Loss: The opposite, meaning if you sell at a lower price than the buying price.
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🎯 Second: Reasons for profits in trading on Binance
1. Good market analysis
Using technical analysis (charts, candles, indicators like RSI and MACD).
Fundamental analysis (news, partnerships, project developments).
2. Entering at the right time
Buying at lows (price is low) and selling at highs (price is high).
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 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. Excessive use of leverage
Leverage multiplies profits, but it also quickly multiplies losses.
3. Emotional influence (fear or greed)
Selling quickly at the first drop, or holding onto a losing coin for too long.
