📊 PnL: The Key to Success in Cryptocurrency Trading 📈

What is PnL?

PnL (Profit and Loss or Gains and Losses ) is the fundamental indicator that quantifies the economic outcome of your trading operations.

This metric is divided into two important categories:

• Realized PnL: Gains or losses from positions that have already been closed
• Unrealized PnL: Potential gains or losses from open positions

🔍 Why is PnL crucial for traders?

The PnL is not just a number on your screen, it is the compass of your trading strategy:

• 📌 Evaluate your actual performance objectively
• 📌 Identify patterns in your successful and failed trades
• 📌 Provide concrete data to adjust your strategy
• 📌 Establish a framework for financial discipline

Without proper tracking of the PnL, you would be trading blindly, relying on intuition instead of data.

⚠️ Common mistakes in PnL management

❌ Focusing only on winning trades: Many traders boast about their successes and ignore their losses.

❌ Ignore the accumulated PnL: A series of small losses can offset a large gain.

❌ Do not correctly calculate costs: Commissions and slippage significantly affect the final PnL.

✅ Best Practices to Optimize Your PnL

1. Set loss limits: Define in advance how much you are willing to lose on each trade.

2. Calculate your risk/reward ratio: Look for trades where the potential profit exceeds the risk.

3. Analyze your PnL periodically: Review your results weekly to identify patterns.

4. Diversify strategies: Do not rely on a single trading method to generate profits.

5. Manage your capital: Never risk an excessive percentage of your portfolio on a single trade.

🎯 The ultimate advice

The most important thing in trading is not to be right in every trade, but to ensure that your total gains exceed your losses in the long run. This is the fundamental difference between professional traders and beginners.

📝 My PnL Record

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

This almost neutral result demonstrates the importance of consistency and risk management even during periods of low volatility. Every cent counts and contributes to long-term profitability.