Monitoring Realized P&L is crucial for assessing trading performance and adjusting strategies. By analyzing the profitability of closed transactions, traders can identify successful approaches, recognize areas needing improvement, and maintain a disciplined approach to their trading activities. Realized P&L helps traders understand the impact of their decisions, manage risk more effectively, and ultimately achieve more consistent long-term profitability. Regularly review realized P&L to track performance trends. Use this metric to refine your trading strategy and identify successful patterns.