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I came home last night to find our ten year old sitting at the computer looking up stocks on Yahoo! Despite these limitations, I decided that this would be a good opportunity to start imparting some wisdom. After explaining this to him, he seemed to recognize the risks…. Nonetheless, while evaluating stocks, he was dazzled by the dollar changes without regard to the underlying share price.

Down a few bucks? Looks like a winner. To help him understand the relative unimportance of performance over a short timeframe, I zoomed out from the intraday stock chart to show him the 5 year chart. That definitely provided a bit of perspective. This is related both to the issue of pricing, and to the importance of thinking long term. So true about thinking long term… the stock market game the kids were playing is great and all, but focusing on short-term profits is likewise short sighted.

Teaching kids about simple dollar-cost averaging by itself would go so far. The stock market is the last thing a child should learn when it comes to money. They should learn where it comes from, how to save, credit, what is means to invest, how it should be viewed, etc.

Lessons From the Stock Market Game

I wish more schools were like your sons. How to handle your money. Things like setting up an emergency fund, saving for retirement, and spending your money wisely.

How to raise your kids. How to prepare your family for a financial crisis and raise them on proper priciples. Two things I feel are society could use more of. I am a newbie in stock market investing.

With the current market trend of a bear market, definitely I would implement the short term investing and the right timing when to buy and when to sell.

As always, the golden rule in stocks is buy low sell high.

Alain, I agree and disagree about visa. Anonymous, Apple is a high end retailer in that they charge full retail price with a pittance for discount e.

21 things I've learned as an investor for 20 years - Jun. 24,

Apple already realizes that they are being hit hard. I just think there will be lots of hedge funds wanting to recoup losses as a result of the short selling ban, and citi was being run down before the ban and i can see hedgies and the like taking one more swing at it.

I think the stock market game is a bad idea unless there aresome seriously reinforced financial principles and realities involved. For 5th graders, the stock market game does not teach anything about financial responsibility and i would contend teaches recklessness over anything else. The stock market game teaches kids how to get rich quick; to take higher or unnecessary risk than the would normally if it was real money because the name of the game is the winner is who has the largest portfolio over the very short period of time, even if the game lasts a couple of months; the fact that it is no real money that the fifth grader has had to earn to put in the game.

So what i learned from the stock market game trading gasoline futures out to be good starting principles, ended up being very bad lessons learned.

I can see that my stock choices and attitude towards stocks have been short term rather than long term. I beg to differ with you Alain… My husband is buying an uhaul work at home pay next week and I bought an iPod Touch in Febbut I do see your overall point, android stock market watch list software might be unusual.

It does get them to be looking at stock options cpe and the thought that goes into what is good or bad bet. For the drug maker, I think Johnson and Johnson would be a solid pick for this volatile market. Your son should be able to identify with the company since they are the maker of Tylenol. Visa in the short term will continue to get hammered as this credit crisis continues.

Perhaps Bank of America or JP Morgan? Apple would be a great pick in a strong economic environment where people have access to discretionary income. But as you know, no one is buying anything these days except for food and gas. I see Apple underperforming in the near term. Have a mini gold futures trading list of companies that have all been around in the last years.

Also have a large list of mutual funds, some with loads, no loads, varying expense ratios, active management, passive management, etc. Come up with a list of how each company did as a percentage each year of the last years.

Put pieces of paper with the last years written on them. Pull one paper per day, and adjust the values of each investment as a percentage of their previous value. Return the paper to the hat when finished. Then, take trade requests for that day.

If the trade involves a stock or ETF, charge a set commission per thai stock exchange market cap. If it is a loaded mutual fund, charge the load. All expense ratio charges will be charged at the beginning of the day. It also includes great leaps and falls for the stock market. This will weigh the option heavily to large cap well known companies.

Since this is intended as an exercise for basic investing lessons, this is less of a problem than it seems. They can learn more as they take more advanced classes later in life.

For now, a good asset allocation strategy is a great lesson Some index ETFs could be managed into it by using the indexes they track, or you could leave out ETFs all together. A computer spreadsheet program would take less time, but still require massive amounts of data entry. I love the idea of the stock market game and I think you gave him some very solid advice. You might suggest that he create several portfolios with different goals for each: This is a legitimate goal but will very likely be won by someone who picks a random stock that explodes briefly think small banks, tech, pharmaceuticals, companies which are good buyout targets, or whoever would benefit most from the proposed bailout.

You may also want to create your own portfolios to match his so that you can compare notes with your son. Click here to cancel reply. Email will not be published required. Many of the savings offers appearing on this site are from advertisers from which this website receives compensation for being listed here. This compensation may impact how and where products appear on this site including, for example, the order in which they appear.

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Lessons From the Stock Market Game. I also suggested that he might want to pick companies that are in different industries. Related Posts Gambling vs. Casinos and the Stock Market Funds and Games Lending Club: The Cost of Inactive Money When Bad Investments Happen to Good People College as an Investment How is Your Risk Tolerance Holding Up?

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