I love investing into the stock market mainly dividend paying stocks for passive income but it’s not for everyone to invest it. There are downfalls to investing into dividend paying stocks or just the stock market itself. In order to make money in the stock market, you must be willing to take some risk in the stock market but some people are not willing to do that. Some people think that the stock market will crash forever which I don’t think it would. Here are the reasons why you should not invest in the stock market:
Companies can cut their dividend payment to their shareholders
I invest in dividend paying stocks which gives me passive income every single month and that’s what I want to do. My goal is to make $500 dollars per month in dividend passive income. With $500 bucks passive income, that can pay my light and water bill and that’s my goal. Companies have the right to raise, cut, slash and stop paying a dividend to their shareholders.
There is nothing that you can do about a dividend cuts when companies make them, the only thing that you can do is you make sure that you do your own research before buying any stock on the stock market. I have had a few of my stocks cut their dividends so I know how it feels and when companies can cut their dividend when they want to, it makes it hard to invest in them.
You can lose money fast in the stock market
Yes you can lost a lot of money in the stock market if you don’t know what you are doing and you don’t know what to invest in. do you remember the GameStop stock that when from 30 bucks per share to 300 per share. People was pumping money into the stock and some people were buying the stock at 300 dollars when the stock was not worth the amount of money.
So when the price dropped and you get some shares at 200 dollars, you lose a lot of money and the only way to get some money back, is when people pump money into the stock. Buying stocks is not easy but it’s not hard as well and the best thing that you can do is your own research before buying any stock on the stock market. You must look at the history of the stock and how to company makes money, that’s just some of the things that I look at but go deeper in your research.
You should not invest if you are not a risk taker
You must be some what of a risk taker in life and in the stock market. Most people don’t know that if you have a 401k, then you are investing in the stock market. If you don’t like to take any risk, than investing it the stock market is not for you. You don’t have to invest a lot of money.
These days with apps like webull, you can invest 20 to 30 dollars to get started if you want to test out the stock market and that’s how I got started with the stock market. I just brought a few dividend paying stocks and held them to see what happens and when I started to see the dividends come in overnight, I knew this is something that I can build up for the future and I would take anyone that is scared about the stock market, I would tell them to just buy a few shares and see what happens. In the video below, I will go over why you should not invest in the stock market:
