Is investing and trading in the stock market a passive income?

The simple answer is NO, it is not. Investing in the stock market could be considered a passive income, trading is not passive at all.

So, why investing is not a passive income?

Although you may reach the fruits of investing and create a passive income in investing, it is only a small portion of the entire business that can be considered passive. The rest is hard work. Why?

First, if you invest in the growth companies, then there is nothing passive in it. If you invest in dividend stocks, only the final part of your work will be passive. Everything before that – again, hard work.

Just look around in Facebook, MeWe, or other discussion forums and all you find is people asking what to do, how to start investing. They have no clue. But they are willing to learn. And the process of learning, trying, avoiding mistakes, tracking their portfolios, learning about the stocks, learning about dividends, all that is not an easy job. And you will agree with me on that if you try to remember when was the last time you tried to learn something you had absolutely no clue about and many times you wanted to give because it was too complicated.

But if you think that you learned everything, found the perfect stocks, and bought them that your job is over and now you will only have the passive income and nothing else (besides a yacht, helicopter, and ten-bedroom house), you will be disappointed. There is nothing “buy and forget” in the stock market. You can buy stocks, forget them, and one day open your account and find out you have nothing left. Unless you buy index funds and settle with it.

But if you want to own individual stocks, by buying them your job doesn’t end. You need to watch them, read about them, and make sure they still meet your original criteria why you decided to invest in them in the first place. And if you do not know why you invested in them, you should have stayed away from the market too.

None of it looks like an easy job and passive income to me. It still is hard work. But, if you know the ropes, it is fun work.

And trading?

Multiply everything I just said ten times.

2 responses to “Is investing and trading in the stock market a passive income?”

  1. Zach says:

    Mart, as a young adult who has a family, full-time job, you’ve found a way to make investing and caring about my future $ much more fun and intriguing. I have to say I am really enjoying learning about the stock market and if it weren’t for me stumbling onto your MeWe page I may have never shown interest! I hope you keep up the good work on here!!

    – Zach

    • Martin says:

      Investing and trading is a process and you need to find love for it. I tried to spark interest in it in my kids but they are not interested. So, it makes me happy, if at least someone finds interest in learning how to invest and trade. No one will do it for you but you. I want to achieve financial independence and freedom and quit my job and be free. But I learned the hard way that there is no short cut and it is hard work. I am happy for you and if you need help I am here to help. Time is on your side, use it. Your family will appreciate it when your investing and trading buys you time to be with them…

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