📊 PnL in Trading: The Key to Measuring Your Financial Success 📈

What is PnL?

PnL stands for Profit and Loss (Profit and Loss).

It is the fundamental indicator that shows how much you have gained or lost in a specific trade or during a certain trading period.

There are two main types of PnL:

• Realized PnL: Gains or losses from closed trades
• Unrealized PnL: Potential gains or losses on open positions

👉 Why is PnL crucial?

The PnL provides you with an objective measure of your performance as a trader:

• It shows you the real effectiveness of your strategies
• It allows you to identify patterns in your successful and failed trades.
• Serves as a tool to adjust your risk management
• It facilitates the assessment of your evolution as a trader

Without proper tracking of the PnL, you would simply be trading blindly.

🧮 How is it calculated?

The basic formula for PnL is:

• For long positions: PnL = (Selling Price - Buying Price) × Position Size
• For short positions: PnL = (Entry Price - Closing Price) × Position Size

Practical example: If you buy 1 BTC at $40,000 and sell at $42,000, your PnL would be: ($42,000 - $40,000) × 1 = $2,000 profit.

🎯 Key advice for traders

Success in trading is not about winning on every trade, but rather ensuring that your gains exceed your losses in the long run.

The difference between amateur and professional traders lies in disciplined risk management and constant monitoring of PnL to optimize results.

📱 My recent PnL record

Period: 2025-04-30 ~ 2025-05-29 Result: +$1.56 (+0.00%)

This example highlights the importance of documenting your PnL even during periods of modest results. The constant analysis of this data will allow you to adjust strategies and progressively improve your results.