Got it đ â youâre asking how to **increase profit and loss (PnL) positively** in trading (basically, how to make consistent profits).
Hereâs a structured breakdown:
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## đ 1. Understand PnL
* **PnL = Realized + Unrealized gains/losses**
* *Realized PnL* = profits/losses after closing a trade.
* *Unrealized PnL* = floating profit/loss on open trades.
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## đ 2. Improve PnL with Strategy
1. **Have a Trading Plan**
* Define entry, exit, stop loss, and risk per trade before you enter.
* Avoid random trades based on emotions.
2. **Risk Management**
* Never risk more than **1â2% of your capital per trade**.
* Use stop losses religiously.
* Diversify â donât put all your money in one trade.
3. **Position Sizing**
* Adjust trade size according to volatility and risk.
* Example: if your stop loss is 1% away, and you only want to risk \$100, then your position size = \$10,000.
4. **Focus on Risk-Reward Ratio**
* Aim for at least **1:2 or 1:3** (risk \$100 to make \$200â\$300).
* Even if youâre right only 40% of the time, youâll still be profitable.
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## đ 3. Techniques to Grow PnL
* **Trend Following** â Ride big moves with trailing stops.
* **Scalping/Day Trading** â Small profits, high frequency (requires discipline).
* **Swing Trading** â Hold positions for days/weeks based on technical/fundamental setups.
* **Hedging** â Reduce risk exposure with options/futures.
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## đ§ 4. Psychology
* Cut losers fast, let winners run.
* Avoid revenge trading.
* Track your trades in a journal â analyze what works and what doesnât.
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## đ 5. Tools to Help
* TradingView / MetaTrader / Thinkorswim â for charting.
* Risk calculators â to size positions properly.
* Journals â Edgewonk, Excel, Notion, etc.
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đ Would you like me to make a **PnL calculator in Excel/Python** for you, so you can track your trades and see where you can improve?