Teach your kids trading

[pinetboltz]

It always bugs me how they teach theoretical bits of trivia w/ very limited practical use in the K-12 educational system, but little time spent on what is really useful for the future, eg:

- How to trade the stock market

- How to choose the right spouse

- What best to eat for a hangover (chicken tenders)

So my question is, for those of you with kids, would you teach them how to trade at a certain age?

I was thinking 5-6 years would be good, before they even get into 1st grade with the other kids and be influenced all day long by their peers, bc at that point they understand basic arithmetic, but don't fully grasp all the implications and social significance of money.

So they would be at a perfect age where they don't have the baggage that many older children or adults face when handling money, where there's all kinds of irrational behavior that results from ppl not wanting to take small losses, placing too much emphasis on the purchasing power element of money, etc.

But would it be psychologically healthy though? For a kid to be potentially trading 10 lots of ES with their dad standing over them telling them to stick to the stop-loss plan, while their friends are impressing each other over some $50 video game.

But if the trading turns out well, you've got a kid who paid for their own 529 college plan, and a skill they can keep using for ages to come.

 

[fan27]

Better to teach them to save. If they don't have that skill, no point in teaching them to trade because they will be stuck on a sim account or worse, trying to trade a $2000 forex account.

 

[Sprout]

It always bugs me how they teach theoretical bits of trivia w/ very limited practical use in the K-12 educational system, but little time spent on what is really useful for the future, eg:

- How to trade the stock market

- How to choose the right spouse

- What best to eat for a hangover (chicken tenders)

So my question is, for those of you with kids, would you teach them how to trade at a certain age?

I was thinking 5-6 years would be good, before they even get into 1st grade with the other kids and be influenced all day long by their peers, bc at that point they understand basic arithmetic, but don't fully grasp all the implications and social significance of money.

So they would be at a perfect age where they don't have the baggage that many older children or adults face when handling money, where there's all kinds of irrational behavior that results from ppl not wanting to take small losses, placing too much emphasis on the purchasing power element of money, etc.

But would it be psychologically healthy though? For a kid to be potentially trading 10 lots of ES with their dad standing over them telling them to stick to the stop-loss plan, while their friends are impressing each other over some $50 video game.

But if the trading turns out well, you've got a kid who paid for their own 529 college plan, and a skill they can keep using for ages to come.

At that age, encourage play, being outdoors in nature, and imagination.

When they get pre-adolescent and beyond (good for adults too) then

The Cash Flow board game by Robert Kiyosaki.

Regardless of one’s opinion on his other material, the particular offering is a product of inspiration and genius.

 

[pinetboltz]

i think the kids nowadays are coddled by all the make believe though, fenced off like they are in disneyland, which doesn't do them any good in the long term -- in fact probably harms them, like a lion which grew up in a zoo being thrown into the wilderness suddenly

instead of giving them a game which doesn't reflect reality, why not let them be a real participant in the markets early on? it'll give them a head start in life

if tiger woods can play golf at age 4, if nadal can start playing tennis at age 3, maybe it's ok to let kids learn the markets in preschool

a perfect combo could be to teach them the markets and programming at the same time, then they'd be really on top of it (facebook ceo is supposedly teaching his kids to code starting from age 2)

 

[destriero]

5 years olds? You're literally too dumb to debate and have obviously never had kids or apparently have ever talked to a 5yo child.

 

[pinetboltz]

@destriero

speak for yourself, dude

i've seen family friends' kids who are way smarter than the norm

you can't honestly say that all the kids are equally smart, that's like saying they are all equally tall, lol

plus, according to your theory of how kids can't understand anything, how do you even explain
- tiger woods learning golf at age 4
- nadal learning tennis at age 3
- facebook ceo teaching his kids to code when they are age 2

 

[Sprout]

i think the kids nowadays are coddled by all the make believe though, fenced off like they are in disneyland, which doesn't do them any good in the long term -- in fact probably harms them, like a lion which grew up in a zoo being thrown into the wilderness suddenly

instead of giving them a game which doesn't reflect reality, why not let them be a real participant in the markets early on? it'll give them a head start in life

if tiger woods can play golf at age 4, if nadal can start playing tennis at age 3, maybe it's ok to let kids learn the markets in preschool

a perfect combo could be to teach them the markets and programming at the same time, then they'd be really on top of it (facebook ceo is supposedly teaching his kids to code starting from age 2)

You’ll be surprised how ‘Cash Flow’ reflects reality a lot !

 

[pinetboltz]

You’ll be surprised how ‘Cash Flow’ reflects reality a lot !

so i checked out the youtube video and the game actually looks educational, especially when the guy brought out the income and cash flow statements, lol, that was a surprise

either way, would want to teach kids to know how capital works, maybe i'll readalong with them on Financial Times when they're young

 

[soulfire]

It always bugs me how they teach theoretical bits of trivia w/ very limited practical use in the K-12 educational system, but little time spent on what is really useful for the future, eg:

- How to trade the stock market

- How to choose the right spouse

- What best to eat for a hangover (chicken tenders)

So my question is, for those of you with kids, would you teach them how to trade at a certain age?

I was thinking 5-6 years would be good, before they even get into 1st grade with the other kids and be influenced all day long by their peers, bc at that point they understand basic arithmetic, but don't fully grasp all the implications and social significance of money.

So they would be at a perfect age where they don't have the baggage that many older children or adults face when handling money, where there's all kinds of irrational behavior that results from ppl not wanting to take small losses, placing too much emphasis on the purchasing power element of money, etc.

But would it be psychologically healthy though? For a kid to be potentially trading 10 lots of ES with their dad standing over them telling them to stick to the stop-loss plan, while their friends are impressing each other over some $50 video game.

But if the trading turns out well, you've got a kid who paid for their own 529 college plan, and a skill they can keep using for ages to come.

Kids are a clean palette - why pollute them with adult misconceptions of trading, which would be anything we try to "teach"? Trading is difficult to most because of the biases that we have acquired over our lifetimes that are very difficult to get rid of. Perma Bears and/or Bulls are the extreme examples of this.

Rather than teach kids how to trade in the market, just give them charts to look at and tell them to it's a puzzle to find patterns, if any exist, to see if they can predict how the chart moves over time. Don't mess with their minds by talking about value, gain, loss, etc.. Just let them take absorb price moves over time with the only incentive being looking for the natural recurring patterns, and see what they come up with.

The human mind is one of the strongest computers on the planet and can come up with amazing solutions if you don't put it in a box. A kid just looking at price moves without the bias of thinking about the economy or the news for a few years might come up with some ingenious insights that will be invaluable for a future in successful trading.

 

[pinetboltz]

Rather than teach kids how to trade in the market, just give them charts to look at and tell them to it's a puzzle to find patterns, if any exist, to see if they can predict how the chart moves over time. Don't mess with their minds by talking about value, gain, loss, etc.. Just let them take absorb price moves over time with the only incentive being looking for the natural recurring patterns, and see what they come up with.

A kid just looking at price moves without the bias of thinking about the economy or the news for a few years might come up with some ingenious insights that will be invaluable for a future in successful trading.

double like, very good idea

this is why i like to post randomly on ET, always get some useful perspectives here

perhaps it'd be like learning a language the native way, instead of someone giving them a textbook on syntax structures, the kids can figure out the patterns for themselves