💡How to interpret your PnL as a professional trader?

You already know what PnL is, but now we are going to understand how to use it well.

📌 Not all PnL is the same:

There are two types, and knowing the difference can save you from more than one scare:

🟢 Realized PnL: Profit or loss already concreted. Money that has already gone through the register!

🔴 Unrealized PnL: The theoretical value of your current position. It seems like a profit... until the market turns.

🧠 How to read it without being deceived?

If you have a positive unrealized PnL, but you don’t have a plan, you could end up selling at a loss.

A negative unrealized PnL is not always bad if it is part of a strategy (e.g. DCA or swing trading).

📊 Quick visual example:

You bought BTC at $25,000

Now it’s at $27,500, but you haven’t sold yet = +$2,500 of unrealized PnL.

You sell = that becomes realized PnL.

🎯 Golden advice:

PnL only matters when you use it to make better decisions.

It’s not to feed the ego, it’s to build your strategy.

💬 Are you the type to check your PnL every day... or do you avoid it until it turns red?