Looking for opportunities like Amazon
Answer our short quiz to understand if you're ready to trade!
The last 10 years in the financial markets have been a real mixed bag for many investors. The decade started with the repercussions of the financial crisis, which turned the global economy on its head.
This was closely followed with the stock market going on to see one of the best bull runs in over 140 years.
This turnaround came on the back of the Federal Reserve delivering Quantitative Easing measures which released the pressure valve on the markets and allowed economies and equities to prosper.
Investing in Unicorns
It was an incredible time for investors and many people began investing in the markets for the very first time ever. Unicorns (companies worth over $1 billion) started emerging from the ashes, big names like Netflix, Uber and Alibaba.
Perhaps the biggest success story of all though has been that of the giant consumer delivery company Amazon.
Everyone knows Amazon and most people have used it. Amazon's revenue for the quarter ending December 31, 2019 was $87.437B. That was an increase of over 20% from the same period the year before.
The figures speak for themselves
If you had invested in Amazon in 2019 you would have seen an amazing 20.45% return on your investment. Investors would be hard pushed to find figures like these in any other market in the world.
With banks paying out 1%, and riskier products paying out around 5% on average, a profit of 23% in one year is simply remarkable.
Here's some stats about Amazon's earnings:
- Amazon annual revenue for 2019 was $280.522B, a 20.45% increase from 2018.
- Amazon annual revenue for 2018 was $232.887B, a 30.93% increase from 2017.
- Amazon annual revenue for 2017 was $177.866B, a 30.8% increase from 2016.
This chart above shows the spectacular journey the stock price of Amazon has taken since the company launched. If you had invested just $1000 in this stock 10 years ago you would have paid $110.58 per share. Now in 2020 the share price circles around the $1950 mark. That represents a gain of $1839 per share. If you had invested just $1000 in Amazon 10 years ago you would now have around $17,727.
Furthermore, Amazon continues to expand into the cloud-computing sector, which is an entirely new form of business seen over the last couple of years. Amazon continues to be one of the major leaders in the United States.
It is important to note that even when markets are unstable, there are plenty of opportunities for investing.
In fact, volatility creates trading opportunities. When you trade, you are in effect speculating on price movements. That means you need to decide whether the price of Amazon will continue to rise or will start to fall.
Ask yourself these questions to start: how often do you and the people around you use Amazon? Is Amazon still useful in times when there are global concerns and uncertainties?
How to start trading?
When it comes to trading, you don't have to be a PHD to get started. In fact, you don't need to know anything about trading at all. All you need is an internet connection and an account with a reliable and trustworthy broker.
A good broker will educate you on using the platform and on how to trade. They will also supply you with a demo-trading platform in order to learn before committing your own capital.
When it comes to trading the markets there is the potential to get big rewards, however wherever there are rewards there are risks too. Never trade more than you can afford to lose, particularly when you are starting out.
Is it a good time to start?
One thing is for sure, Amazon is going nowhere any time soon. This is a company that is solid in terms of its fundamentals, that means revenue, turnover and share price.
Right now, in the markets there is a lot of uncertainty due to a variety of reasons, however this doesn't seem to impact Amazon. What is more, when trading CFDs, volatility and choppiness in the markets tend to bring bigger trading opportunities.
If this article has opened your eyes to the possibilities, and you would like to know more about how to get started in the markets then leave your details.
We have teamed up with trusted broker RefinedForex, who are helping traders from all over the world get started in the financial markets. You can get a call back which is no obligation and will help you decide whether the financial markets are right for you.
Our certified online trading platform is looking for people interested in trading, and offers the following benefits:
- Free registration to the platform
- Updated trading charts in real time
- Partnership with available expert tutors
- 12-hour support and assistance
- Simple and useful tools to learn all the tricks of trading
- Getting started doesn't require a large down payment. All you need is a small deposit (minimum $250).
Answer our short quiz to understand if you're ready to trade!
This article was submitted by RefinedForex.
