AMAZON STOCK-What You Need To Know About Amazon

OK so, something quite cool happened to meth other days. I got a message on Instagram from a very popular YouTube. Over a million subscribers on YouTube and almost the same amount on Instagram. And he let me know that he’d been watching my videos. Anyway, we got talking about Amazon stock.

What You Need To Know About Amazon:)

You all know the company, you probably buy half your unnecessary items off their platform. But in this video, we’re going talk about their shares. What we need to know when making the decision if we want to be an owner in this company. Main Body Leader So first I’ll start off with their leader. The Steve Jobs of e-commerce. 

He goes by the name of Jeff Bozos. And he is a visionary. He saw this crazy trend, that the internet was growing at 2300% per year and he wanted to join the ride. So he started his company Amazon which sold books online. He used to drive the packages to the post office and he thought that one day he might be able to afford a forklift. And we all know that can afford a lot more than a forklift these days. He then moved the business to sell music and videos online. And now Amazon is pretty selling everything.

 The point I’m trying to make is that if Jeff Bozos put’s his mind to something he can generally achieve it. One of Warren Buffet's rules is that you should invest in companies with vigilant leaders. Jeff Brazos epitomizes the word vigilant and Buffet has actually said that he thinks Bozos is the best business leader that weave in the United States. Quality Business But we do need something more than just a high-quality leader. We need high-quality business as well. And I’m just going to say from the get-go that Amazon is a high-quality business.

 It’s one of those businesses that doesn't require extra capital to grow because it harnesses the power of something called the internet. Businesses like Walmart have to pay a fortune to build a new store and up the sales.

 Amazon’s platform is already built so they can sell as much stuff as they want as long as the demand is there. As we’ve seen it's tearing down other industries like we haven’t seen anything like it before. Retail businesses have been dramatically affected, the IT world has been shaken up, even pharmaceutical companies are worried. 

So what I’m trying to get is that Amazon has been the company that has harnessed the power of something great. And we don’t know the potential growth that may keep coming from Amazon. We’ve had a sniff at what the growth has been in the past but the question is can Amazon continue growing like an out of control weed. 

Pay A Price That Makes Sense And that brings me to the last point. Charlie Manger says that no matter how goods company is we will not pay an infinite price for it. And that’s the question will Amazon grow enough so that it justifies a price of $1,743 per share. I mean it's only earning $8 per share now, so let’s be honest that number is going to need to grow crazily in order to justify that current price. But the thing is Amazon has grown crazily in the past. Jeff Bozos is a hard man to write off. So can they do it, I’ll leave that for youth to decide and let me know in the comments if you think they can.

 It's going to be an interesting stock to watching the next couple of years and I’ll keep track of the stock in this channel. But I’ll leave it at that for this video. Don’t forget to drop a like to see more like these where we analyze different stocks. Why stocks? Because buying stocks makes us business owners. And being owners is the way to financial freedom.

Amazon Stock Technical Analysis:)


  Buying and selling the same stocks as institutional traders, there's one way to try to increase in trading success. While identifying trends can help you find these stocks, sometimes it helps to look at volume, too. Volume is the number of shares traded on a particular day and can provide further evidence of institutional buying or selling. Let's look at how to combine trend and volume.

 Also, I'll show you a tooling Paper Money, the On Balance Volume Indicator, or OBS. First, let's look at a bullish example, where volume increased during an uptrend. For this example, we'll look at a one-year daily bar chart of The volume is in the pan on the bottom of the chart. Each column represents a day. In January 2015, Amazon made a positive earnings announcement. The good news caused an influx of demand, resulting in many buy orders.

 This is reflected in the volume spike and a price gap. Gaps happen when price makes a big move since the last price with no trading in between. In this case, the price gaped up to find enough supply to fill the demand. Price continued to rally, resulting in a new high. Eventually buying slowed and the stock pulled back. Volume returned to normal and price created a new higher low. The stock created new higher highs and higher lows through July.

 Throughout the trend, notice how a volume spike accompanied each rally. Increased volume on thermally suggests institutions is buying the stock. Let's see what happens to volume in a bearish example. Sun corp Energy Inc. Created lower highs and lower lows from June to August of 2014. Now let's look at volume. If you compare the summer months to the fall months, you see volume picked up through September and October.

 To show what was happening to price, I'll draw a trend line. This increased sales caused the stock to fall more quickly. As we move forward, we can see that similar selling took place in November and December. The higher volume and the faster price selloff likely shows where more institutions started selling. This is another example of how combining volume and price can help you see where institutions are putting their money. When it comes to analyzing volume, there are a couple of things to keep in mind.

 First, downtrends are commonly faster than uptrend. In fact, it's been said that stocks take the stairs going up and the window going down. You saw this in the previous example. Therefore, you should consider ways to protect your investments. 

Second, sometimes high volume stocks don't show large volume spikes. This makes it difficult to tell where institutions may be putting their money. A stock like Apple tradesmen million shares per day. Compare that to Amazon's four million shares per day. To cause a spike in Apple, a lot of institutions would need to betraying the stock.

 The spike will still happen, but just not as often. However, there are charting indicators like the OBS to help you spot volume strength with the trend. It measures the volume on up and down days to see where the trend strength is. First, also you ha veto add the indicator. Then we'll talk through how it works. For this example, let's use Alphabet. I'll type G-O-O-G-L in the search field and hit Enter. Now I'll add the OBS by clicking the Edit Studies button. Next, I'll scroll down to On Balance Volume and select it.

 Now I'll click Add Selected. OBS works best if it's visually overlapping price because it helps you identify the trend and its strength. By placing them side by side, you have an easy comparison. So I'm going to move the study over the price. This is done by placing the mouse over the On Balance Volume pane and clicking the up arrow until it's in the price pane like this. Finally, I'll click OK. Here's what to consider.

 When volume is confirming an uptrend, the OBS line will uptrend at a greater rate than the stock price. When volume is confirming a downtrend, the OBS line will downtrend at a greater rate than the price. Alphabet traded sideways for much of 2014 and 2015. When we look at the volume pane, there is hardly any discernible difference in the volume for Alphabet in 2015. However, we can see that in January of 2015, the OBS up trended faster than the stock price. This signaled that institutions were likely accumulating shares. For traders using this tool, the July breakout may not have been a surprise. Uptrend identify stocks and demand. Combining the trend with volume provides more evidence when attempting to identify which stocks institutions may be buying.  

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