Asked on 12 Aug 2019
How does long term stocks works? if I'm looking to buy and hold it for long term (30 years), from time to time, if share prices drop below buy-in price, do I need to have extra cash to withstand it?
Does it work like day trading? Will it start to deduct money from my accounts if the shares fall below buy-in prices?
Or is it a 1-time buy-in thing? If I were to buy 50K worth of Amazon shares, I will lose 50K at most if the stock crashes?
How does one lose money, buying long term and holding it?
To add on to the other answers, there is a minimum commission paid to the brokerage when you buy and sell, so it is often not worth it to just buy/sell 1 share.
In addition, brokerages actually hold your foreign shares on your behalf so they will also charge a monthly custodian fee (couple of dollars).
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14 Aug 2019