I just saw that many new traders do not really understand what PnL is, and that costs them money. Let me explain it simply: PnL is Profit and Loss, basically your profit or loss on each trade. It sounds obvious, but most people do not monitor it correctly.

The interesting thing is that in trading, it’s not about always being right. Truly. I’ve seen traders who win 60% of their trades but still lose money because they don’t control the risk. That’s why understanding what PnL is in trading is so crucial; it’s not just a number, it’s your compass.

The key point that separates professionals from those who just gamble blindly is risk management. You need your profits to exceed your losses in the long run. And for that, you have to constantly review your PnL, adjust strategies, and learn from each trade.

Many think it’s complicated, but it’s not. You simply need discipline to regularly review how your actual performance is going. Without that, you’re really trading without direction. The difference between an amateur trader and one who makes a living from this is precisely that one ignores their PnL and the other uses it as a tool to constantly improve.