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“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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