Dear Friends,

If you cannot able to determine both the purchase price and the selling price of a stock, you can certainly cannot determine the profit either.

In the stock market, the purchase price and the selling price are the only factors that are important to determine an investor's profit or loss.

Key factors determining your profit in the stock market:

The key profit formula:

The profit or loss on a stock is the difference between the selling price and the purchase price.

Profit = (Selling Price - Purchase Price) × Number of Shares

The target and the control:

If you do not pre-determine the purchase price for a company's stock, you would lack a proper investment plan.

Similarly, if you do not determine the selling price, specifically a 'Stop-Loss' that limit losses or a 'Target' to lock in profits, you may risk facing significant losses during a market downturn.

Price determination is not in our hands always. 

The market price of a stock is determined solely by the market demand and supply; however, you alone can decide through your analysis at which market price to buy and at which price to exit (whether to cut losses or realize a target profit).

Therefore, successful stock market investors always conduct fundamental and technical analysis.

And plan their purchase price and selling targets in advance before investing in a stock.

The entry and exit prices of a stock directly determine both the profit and loss;

Therefore, as an investor, if one cannot determine to both the purchase and sale prices.

And it is impossible to determine the profit or loss for that stock.