Teaching your children how to trade

[Eddiemorra]

Would you be at all interested in adopting me, Pauk?

 

[Eddiemorra]

Don't you get bored sometimes?

Not to go off-track, but why? I never seem to understand this, but i've heard people say such things before. Like the other day I was watching a program with my sister about the children of billionnaires who spent all of their time doing....well, whatever the hell they liked!!
And to my amazement, my sister said ''what a wasted life!''. I was like '' 'wasted life?!'...they're living the only lives worth living! People dream of winning the lottery so that they can live like this, and you're saying it's a wasted life??''
Surely going to work for 10 hours per day, 5 days a week is a wasted life in my book!! lol

 

[smallStops]

Not to go off-track, but why? I never seem to understand this, but i've heard people say such things before. Like the other day I was watching a program with my sister about the children of billionnaires who spent all of their time doing....well, whatever the hell they liked!!
And to my amazement, my sister said ''what a wasted life!''. I was like '' 'wasted life?!'...they're living the only lives worth living! People dream of winning the lottery so that they can live like this, and you're saying it's a wasted life??''
Surely going to work for 10 hours per day, 5 days a week is a wasted life in my book!! lol

I am not saying a wasted life.
What I am asking is : do they get bored sometimes?

Just now, I am coming off a trip in the countryside. Well,I would have never realised
the value of a healthy and sane lifestyle.

 

[R1234]

Interesting thread. My own thought is that I when I choose to retire I would want to hand it over to my kids rather than sell the business. I think it would be more lucrative long term to keep it running rather than selling out for some short sighted valuation somebody may put on this type of business.

My kids are still young (one is in 6th grade and one is in pre-k) so I haven't shown them my inner workings yet. But I do give my older child subliminal suggestions to steer her to study computer science when she enters college. I have a constantly growing pipeline of ideas and potential edges without the time to code them. Having her learn C++, Python, R, SQL, etc would catapult my business to the next level.

Of course, having the kids get computer science degrees will mean nothing (to me and my business) if they don't have an innate interest in trading and the markets. After I retire and hand it off to them they need to learn the art of becoming curious and searching for edges in the markets by themselves.

 

[i am nobody]

This is such a big topic with so many facets to it...

My initial thoughts are that you have to consciously separate the role of being a father with the role of teacher. You have to be prepared to accept that the child will never "get it" and still be a great father to them. Whatever happens, your never lower your standards as a father even if they blow up and do something stupid with your money. In some sense, letting them have a mini blow up by themselves (which you still have some control over), and then maintaining your role as great father during adversity, such as taking them for a meal, golf, etc. will have long term benefits. They will remember that.

So I really think you kind of have to "embrace" a P&L hit that was caused by THEM breaking basic rules, e.g. not taking a stop. If they only make money from the beginning, how will they cope later on when they do have a setback? It has to really HURT to lose money as a result of breaking rules, but not because the father says so. If they feel shameful and disappointed in themselves (and it is not you doing the yelling), that is a good sign...then they might have the motivation and determination to succeed and put in the sacrifices that you did. At that point, they want to prove themselves and be willing to run through a brick wall. But I really think the fire has to come from within the person.

If one or both of them walks away for a year or two and does something else, that doesn't mean they won't be interested again at a later date. So although that might be frustrating at the time, you should be ready to re-start again with their education when they are ready.

Play the long game, I would suggest.

I had parents that did never support me. They never listened to me too. That's probably why I am so focused on doing the things that I missed in my life as a growing up teenager.
My plan is a lifetime job. I will, till the day I die, help my children, financially but also as a coach.
When my children would be trading, I will be their business partner, so there will be agreements that have to be respected. Skipping rules a few times is not a problem, but if it become symptomatic I will take action. I will never let them trade if I am sure they are not qualified for it. People who cannot trade should not trade, whether they are your children or not is irrelevant. But I can help them with other things too.

I have in my family a father who gave his company to his son. The son was a spoiled idiot and the company went broke within a few years. The father had to change his lifestyle from having a few houses, stables and expensive cars to living from a welfare check. One of the employees took over the broken company and made it successful again. That's when I learned that business is business, no matter how much you like your children.

 

[Q3D]

Yes, it is very easy and brains are not necessary.... That's why 90% never succeed. LOL.

Sounds like you're patting yourself on the back thinking your high IQ is mostly responsible for your trading success..if you have a high IQ, it's not. There have been studies showing mathematicians trying to implement chaos theory into the markets have failed terribly with execution and traders with near-average intelligence have had an unexpected amount of success, if intelligence is the criterion to predict trading success. How do you explain these outcomes?

 

[smallStops]

Q3D: people have different ways to milk the market.
I knew one trader who could not read and write, but sure could pull money from the market.
On the other side, you have Renaissance, who operates with the brain of 100s of PhDs.
The market is there for all types. Thanks God for that actually!

 

[i am nobody]

I want their life to be one of uninterrupted fun. Never any stress or depression that 'work' brings. Just non-stop holidays, fun, complete freedom and relaxation.

My brother in law had very rich parents. He did never learn and never worked.
When he was 25 he was sleeping all day and at night he was watching video's and playing computer games.
He got addicted to pills, divorced from my sister, and commited suicide when he was about 40 (it was his third attempt already and he spent a lot of time in psychiatric clinics and therapy).
People should have a sense in life, he did not have that at all. So he decided to end his miserable life.
His parents wanted to give him the life you are speaking about. Maybe think it over again.

 

[smallStops]

My brother in law had very rich parents. He did never learn and never worked.
When he was 25 he was sleeping all day and at night he was watching video's and palying computer games.
He got addicted to pills, divorced from my sister, and commited suicide when he was about 40 (it was his third attempt already and he spent a lot of time in psychiatric clinics and therapy).
People should have a sense in life, he did not have that at all. So he decided to end his miserable life.
His parents wanted to give him the life you are speaking about. Maybe think it over again.

Those who've witnessed how wealthy families'kids get destroyed by many drawbacks - one of these being idelness - have learned much.

I wonder if Pauk could actually think more about living this lifestyle himself.
I mean , it is good to project on others, but what about living it himself?

 

[i am nobody]

Sounds like you're patting yourself on the back thinking your high IQ is mostly responsible for your trading success..if you have a high IQ, it's not. There have been studies showing mathematicians trying to implement chaos theory into the markets have failed terribly with execution and traders with near-average intelligence have had an unexpected amount of success, if intelligence is the criterion to predict trading success. How do you explain these outcomes?

this is what you wrote:...could mold a profitable day trader out of a mentally challenged or mentally ill son or daughter.
I have no high IQ but that's irrelevant as you tell that mentally challenged or mentally ill people can become good traders. So you make it sound that intelligence is not necessary at all, even the biggest idiots can be good traders.

Can you tell me then:

1. why +90% never succeed? Maybe they are mentally not ill enough or not stupid enough?
2. why big funds only want highly qualified PHD's or math wizards? Possible explanation might be that at some point genius approaches insanity and idiocy.... which makes them good traders.