What is Profit&Loss (P&L) Statement ?

Definition : Also known as Income statement, is a financial statement which shows expenses and revenue of a company during a particular period, usually a fiscal quarter or year.
Read : What Is Balance Sheet ?
Income Statement helps to convey the status of a company i.e. Company is making profit or suffering losses. It is very important to read Income Statement of a company before investing, both of recent and past years.
Note : Revenue : Total amount received from sales of goods and services. Expenses : Total amount spend in producing final product or service.
Structure of P&L Statement  Income Statement is divided into Five main section - Net sales, Cost of Goods Sold, Gross Margin, Operating Expenses and Net Profit Before & After Income Tax (Or Net Loss in case of Loss).
Net Sales : It is the sum of Gross sales excluding its returns, allowances and discounts.Cost Of Goods Sold : Amount of money used to produce the final product. For example cost of inventory, merchandise purchased…

Anyone Can Make Profit Using This Technique In Stock Market

Wall street or Stock Market, various name but single job. Me and you, we both enters Wall Street thinking of becoming the next Warren Buffet or somehow close to him but do you really think the way you are trading will able to make you such amount of money. Is it that easy or if it is then why thousands of people failed and suffered huge losses or even quit investing. I think the biggest reason of failure is the mindset of a investor, mindset of earning very huge profit in very less time in simple words the impatient amateur mindset. Every trader says Stock market need deep knowledge and research if you are planning to invest and this is 200% true but today i will tell you a technique from my experience using which you will make not millions or billions but good amount of money depending on how much you are investing, which still requires some of your skill like awareness, determination and prediction.

So first thing you need to do is to search for the stock who is falling down, always remember there are thousands of stocks available in India so choose based on the amount you are investing. if you want to invest more than one lakh then choose for the Stock having price between ₹500-₹1000 but if you are a beginner then i will suggest you start with stocks below ₹200 as it will reduces the risk of losing large amount of Money. Always make sure to choose stock with good market Capitalisation and Reputation.

Next step you need to do is to choose 4 or 5 stock which is falling down then check for 3 month or one year graph, take a good look at the graph and search for a common price (The price at which graph line comes often) which you will be able to find in most of the Stock, there is very less chance that a particular stock will remain low for longer term from that common price unless any disaster happened to that Company. Then wait for the stock price to fall minimum ₹5 or ₹6 from its common price, then quickly buy it and wait for the stock to again rise up and after it reaches to its common price quickly sell it, and collect the profit you gained. You always need to aware of  price Ups and Downs.

For e.g. Stock of Manappuram Finance, you can see graph mostly lies between 100 - 110 and 106.40 is the price which greatly hold by the manappuram through out the year sometimes its goes more ups but most of the time goes down from 106.40 after a while then again comes up so we can say there is greater chances of price to come up at 106.40 if it falls down. So when you buy share at 102.35 you will make profit of around ₹4 on each stock which will multiply based on how much stock you hold. That how you can make plenty of money. Sometimes stock falls Upto ₹10 or more so you just need to aware of price changes. You Can make even greater profit using your awareness and prediction. For large profit you need to invest huge amount of money, but it can be too risky.

Pleas note do not think for the price to rise more or more to gain large profit as it can be your mistake, sometime it will rise up but most of the time it will not so don't do that otherwise you will end up losing your money or earning very less profit. You can able to find such type of Stocks everyday you just need to do a proper research and get aware of price changes. 

Don’t rush while investing in stock market, make little in the beginning don’t greed for large profit, make little everyday and learn everyday then add up that little profit with your knowledge and then invest in large. If you made large profit then invest some part of your profit on buying assets, get partnership with growing companies, invest on start-ups with good future opportunities, invest in under-valued opportunities, etc. Try to use your money on different asset other than stock, Because always remember you can’t be a multi-billionaire by only trading, you also need to know how to use your profit wisely.

I new to blogging so if i failed to make you understand how to trade like above mentioned then please contact me using link in sidebar or comment below, I will try to explain it more better way.


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