HOW TO TRADE AMAZON STOCK IN BAHRAIN

Step 2: Open an account

Once you have chosen the Broker you feel it's the best alternative you have, you will need to complete the account opening process. First of all, remember to double-check if the Broker does open accounts to clients in Bahrain; a handful of them don't. Once you have checked that, the account opening process will feel like opening an account with your phone apps.

In most brokers, the process will be straightforward and will be completed on the same day, although in some instances, it may take a couple of days to verify your identity and financial background.

Step 3: Deposit money into your account

Once you have your trading account ready, the next stage is to make the first money deposit. The minimum amount is usually around USD 100-200, or the equivalent in Euros, Aussie Dollars or Sterling. Adding funds is usually an instant process; you will have access to your capital when you authorize the operation (excepting a bank transfer, which could take up to 3 business days).

Funding your account can be completed via credit card, debit card, bank transfer or Paypal, as well as Skrill or Neteller. Nevertheless, be aware that the Broker might charge you extra fees when using some payment methods.

This deposit will provide you with the liquidity in the account to buy the matching value in Amazon shares.

Step 4: Buy Amazon Stock

You are in the last step to be able to hold Amazon shares!

To do this, go to the Broker's search box, write Amazon (or its trading symbol AMZN) and select it. Usually, a small box called the trade order box will appear where you must complete the following details:

• The number of Amazon Shares you wish to buy. The amount of shares is constrained by the capital you have deposited in the trading account.

• The price at which you would like to execute the buy order if you would like the current price to drop a bit before you go in. Alternatively, you could go with the 'Market Order', which will execute the buy transaction at the current market's

Finally, complete the trade by clicking "Execute Trade", "Buy", or whatever message the order box shows. And, accomplished. Congratulations, you possess Amazon shares.

Further Step: Review your investment in Amazon regularly

Once the trade completes, it is now time to monitor it regularly. Be up to date with Amazon's news and the price's technical moves.

You will need to decide your exit strategy. In other words, the catalysts and timeframe you want to keep the position open (or closed). Are you a long term investor? a short-term trader? The previous questions are the primary consideration you have to have when thinking about your exit strategy. In the case of making a short-term trade, you will need to be aware of the news and technical movements daily, but if you want to take the long-term investment, you will need to be mindful of the essential info, such as quarterly results.

You can decide at any time what to do with your shares. Thus, you will be able to manage your trade and change it at any time according to your convenience.

If, for example, you had planned to keep the stock for an extended period, but after a few days, the stock rises a high percentage, you can decide whether to sell them at that time or continue with your investment strategy and keep it longer.

Remember to set objectives, both for-profits and losses, and ensure your capital. To do this, use the Take Profit and Stop Loss tools and adjust them according to the target price you desire to win or the maximum loss you want to bear.

Now that you've learned the required steps to buy Amazon stock, let's move on to learning about the company as an investment.

Why invest in Amazon Stock?

Investing in Amazon represents a stake in an exceptionally successful business. It went public on May 15, 1997, and the IPO price was $18 per share. In its first year, the value of these shares increased by 1000%, opening at 4 dollars and closing at almost 60. Since then, the annual growth has been double or triple digits in the vast majority of the company's twenty years of history.

There is no doubt that COVID-19 has had an enormous impact on the economy and how people relate to other people and technology. For this matter, the pandemic benefited companies like Amazon because it allows shopping while significantly reducing the risks associated with going to crowded stores. As a result, in the second quarter of 2020, sales were up nearly 42% from the same quarter last year.

That said, there are fears among investors that the COVID-19 vaccines and the end of the pandemic could cause a return to pre-pandemic buying patterns. However, this thesis is not widespread; people feel comfortable going back to their previous lifestyles. Still, Amazon sales are rooftop.

In terms of its product offering, besides the retail sales platform that we all know, Amazon also has Amazon Web Services (AWS), its cloud computing unit. AWS is still a relatively small part of the company's total revenue, but AWS accounts for the bulk of Amazon's profits.

With roughly over $10 billion in sales, AWS accounts for about 10% of total sales, which doesn't seem to be too significant. However, thanks to AWS's ultra-high gross margins, its operating income represented more than 50% of Amazon's operating income.

Pros and Cons of Buying Amazon Stock

Advantages

• Industry-leading business

• World's Top-1 online marketplace

• Almost 20 consecutive years making all-time highs in its price

• A top-5 company by market capitalization in NASDAQ

Drawbacks

• Its monopolistic position faces risks of increased regulation.

• Big rivalry in international markets (For example, Alibaba and MercadoLibre).