How to Buy and Trade Amazon Stocks
When you want to order something, what is the first company that comes to mind? There is a high chance that it’s Amazon. Even in times when the borders are closed, and people all around the world are isolated at home, Amazon keeps working.
Amazon: Short History
Amazon is a multinational technology company operating worldwide with its headquarters in Seattle, Washington. The corporation was founded in 1994 by Jeff Bezos but has already managed to cover such sectors as e-commerce, cloud computing, digital streaming, and artificial intelligence. Although, it has not existed as a multinational corporation, it keeps up with such giants as Google, Microsoft, and Apple.
Is It Worth It to Invest in Amazon Stocks?
In 2019, the company gained the title of the world’s largest e-commerce retailer for their online revenue. The same year, the company became the second-largest employer in the US after a series of businesses’ acquisitions such as Whole Foods. Amazon provides plenty of products. They include amazon.com, Amazon Web Services, Prime Video, Amazon Music, Fire Tablets, Fire TV, Echo and Alexa, Kindle E-readers and Books.
Besides last year's rewards, Amazon managed to stay afloat amid the current crisis. If you look at the chart, you will see that the AMZN stocks were plunging from the middle of February to the middle of March – the peak of the coronavirus outbreak. Nevertheless, in the middle of March, the stocks rebounded and moved up, reaching new highs. Currently, the company has been trading at levels never seen before.
How to Buy Amazon Stocks?
There are two primary ways to invest in Amazon. You can choose between real shares and CFD trading.
Amazon stocks are traded on the NASDAQ stock exchange under the AMZN ticket. If you want to become a holder of Amazon stocks, you can either apply to a brokerage firm or a financial advisor.
When buying stock via a broker, all you need to do is find a reliable firm, open an account, find Amazon stocks on the list, decide how much money to invest, and place an order.
There are two types of orders you can place. There are market and limit orders. Placing a market order, you will be able to buy stocks at the current market price. Using a limit order, you can determine the maximum price at which you are ready to buy. If the stock price exceeds your limit, your order will be canceled with no loss.
The one thing you should consider when purchasing real stocks is the high price.
However, there is such an option as fractional share investing. It means you can buy a fraction of the shares and increase your holdings over time.
A financial advisor is another option you can use to buy stocks. When trading through a brokerage firm, you are responsible for all your decisions and can get a piece of advice only from experts on the internet. It can become a challenge for a newbie trader. A private financial advisor can help you with your investment decisions. Although, the risks will still be on you, an advisor can assist you with what and when to invest.
If you are not sure how to structure a portfolio or what stocks to trade, an advisor is a good option for you.
To conclude, Amazon shares are one of the most attractive investments among professional investors. For 25 years, the company has been proving its reliability. The company’s stocks rise in value daily and confirm their investment attractiveness. Moreover, Amazon stocks provide exciting opportunities for CFD trading.
However, before you enter a real stock market, you should practice your skills. A Libertex demo account gives you a chance to master your predictions at no cost. Open a demo account and start your big investment path.
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