i have a 12 year old son and would like to teach him about trading..where do i start? please recommend a few books for children..he understands buy low /sell high, support and resistance lines and he can see trends .....
I have been trading on and off for the last 12 years. I remember my first share, into the bank and R2500 later I had a a share certificate(In the post). Sold in six months and made triple on my investment. Yet I emplore and advise markets are moved on emotion and always will be, people come with analysis and forecasting....what will the market do? But it all comes down to common sense and logic. Never get greedy and always understand the the unexpected! Analysis ....Paralysis... You forget what you were doing. I believe that when people see disparity I see opportunity. "A postive anything is better than a negative nothing"
Sixpack..I would like to suggest that you devise a clever way for him to understand compounded interest...once he gets that the rest is easy..As for books, I think rich dad/ poor dad does a good job of teaching a few basic ideas...but compounding is everything..
And at an early age, long term investing and compounding will take him very far when he grows up. There's many interesting books i have about value investing, buffett, graham, etc. but these arent geared for children and they will possibly not understand it - Rich Dad, Poor Dad is quite easily understandable, maybe Robert even wrote books for children, wasnt there such ones like Rich Kid, Poor Kid? Maybe let him build a virtual portfolio and get paper experience, thats the best way to learn.
If your twelve year old is like me who likes to listen or watch movies rather then read I would recommend you download a free training series from youtube, there are many (try searching informedtrades.com in youtube) starting from the very basics series good luck this is a great initiative
My son is eleven and I am also teaching him I invested his R4000 3 years ago and its now worth R18000 I show him what I buy offor him and the reasons why and also why I sell. To keep his interest peaked i physically pull out the dividands and give it to him as extra pocket money. Rich Dad wrote a comic book it seels for about R50 at CNA very informative. He already knows the principles of a income statement balance sheet ecetera. Also buy the book An introduction to finance by Youssef F Bissada iDEAL FOR 12 year olds to learn finance and interseting for them..........Good luck and if you find any other good books for kids let me know.
thanks guys...i currently have invested his savings in shares like telkom which he had picked up at initial R22 or so.. he has been thrilled by the dividends received so far...thanks for the input.. maybe i will also learn from those kids books...let me also thank all you guys for a great forum...barry john platsak etc...you are very informative for a new guy like me...