Profit and Loss
The net gain or loss on a trade or account, usually shown as P&L.
Quick answer
Profit and loss is the net gain or loss on a trade or account.
Definition
Profit and loss, or P&L, is the net money gained or lost on a trade or over a period. It is the number that decides whether your strategy works. Tracking it honestly, including every losing trade, is the foundation of improving as a trader.
How It Works
- It is the measure of whether a strategy works
- It must include every trade, win or loss
- Honest tracking is how you improve
Trading Tips
1
Review P&L as a series, not one trade
2
Separate the winners from the process
3
Journal it to find your real edge
Related Terms
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