“Early Bird Catches More Worms”
Early introduction to the children’s mind the field of business and investment might not be a bad idea. Some might think that they are too young for that and they need to enjoy life as a kid. In our case. My family have a monthly interfamily stock tournament where every month has a winner and have a $ 5 prize whoever has the highest growth of their stocks. The players are me, my wife, my 8 years old son and my 10 years old older son. We all have a fictious starting money of $100,000 to play and buy a stocks. My two kids were enjoying the contest, because they know their opponents, their mom and dad. Almost everyday, my two son will ask me How was his Nokia , Walmart, Walt Disney , Citigroup is doing? One time , My 8 years old son ask me how was his Walmart doing is it up or is it down? I was too tired from the job and I was not able to check the individual stocks but I knew that the Dow Jones Industrial Averages , Nasdaq and S&P were slump deeply in response to Dell and HP profit earnings news. So I responded and make a little story underestimating his intelligence that your Walmart is gaining for the day. But before that the first few words that come to my mouth was a little financial news to my Kids that the Dow Jones Industrial Averages and Nasdaq plunges so deeply that there was a massive sell off particularly he technology sector. My little kid responded with question to me and said” you said Pa that the the Dow Jones is down, how come my Walmart is gaining”? I was a little bit embarrass by myself and forget that my two kids have already knew all the 30 members of the Dow Jones and more than 50 members of the Nasdaq. When I check my computer the Walmart was losing approximately 2%. It surprise me so much and proud of myself that they have an idea already that if the indexes are down more likely the members or the components are also down. Perhaps you might think that they can not understand and its is too hard for them. If this works for my family, there is no reason that will not works for you. Unless you are not willing and motivated to do so. After six months of our family tournament, my two kids will pick their own stocks based on their own fundamental analysis and technical analysis. First they valuate the stocks and choose a P?E ratio from 10-25 only for the very simple reason that they need to be more defensive because there is no signs of turning around of the economy yet.. They also know how to analyzed if the stocks are oversold and overbought using the slow and the fast stochastic. Although , they were having hard time pronouncing the moving average convergence and divergence, they still aware to look for a valley for a buy opportunity and a mountain for a sell opportunity.. Other technical analysis like the money flow index , relative strength index, bolllinger band and parabolic stop and reversal are also part of their tool in picking the stocks for out tournament.
Parents devote themselves to their kids. They always look after them. They work hard enough to provide their children's happiness. They make sure that there is enough food in the table to nurture them and have a good health. All the love and care are cultured and cultivated in every moment sprinkled with kisses and hug that will inevitably bloom to its fullest fragrance of unconditional affection. Parents also express their love by buying them toys, cards, video games and other entertainments. My kids love pokemon cards. They have a club in Hastings where they play, trade and battle with their cards. They have several hundreds of cards arranged according to their powers. This might be sounded like a waste of money. For their happiness, we feel that we have to buy something for them that they are crazy about. To make the best out of this spending habits of pokemon cards, I relate their knowledge compared to the stock market. As they do trading, I coach them to trade well taking out their emotions. during their trade. At one point in the past, one my kid wants to trade something that he does not knew if that was a good trade or bad trade. I told him, never trade card unless you knew what you are doing. Never trade unless you gain something and you are advantages to your opponent . Do not trade just for the sake of having a trade, this will make you a compulsive trader gaining nothing. You must trade objectively in order to win. I also teach my kids the value of patients and never tried to force yourself to trade. We came back after one week and he only have a two trades on that after noon and was a very successful one. He was able to trade a weak pokemon cards to a stronger holographic one that he likes it the most. Five minutes before closing, he was able to trade a better holographic cards with much power in it, because the other kids was just carried by his emotions and afraid not to have a trading. on that session. On next week session , h was succesful again to trade a good cards.
All of this, as I explained to both of my kids is exactly the same as the stock market. Controlling your emotions, your patients and your knowledge will play a great rule in your success. My son Kivin won two games in the pokemon and get 40 points on this session.
By webspawner.com
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