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Getbig Main Boards => Gossip & Opinions => Topic started by: Tedim on February 17, 2014, 09:11:24 AM
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for trading and learning the markets.....11 years old, should be interesting. Will update on trades and outcome. Will have me to answer questions, but picking the investment vehicle and deciding when to sell etc all on the kid.
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for trading and learning the markets.....11 years old, should be interesting. Will update on trades and outcome. Will have me to answer questions, but picking the investment vehicle and deciding when to sell etc all on the kid.
That is stupid. Put the 1,000 dollars towards my Getbig challenge.
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for trading and learning the markets.....11 years old, should be interesting. Will update on trades and outcome. Will have me to answer questions, but picking the investment vehicle and deciding when to sell etc all on the kid.
Thats awesome dude.
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Kid should be given a imaginary portfolio of stocks to track for a period so he learns the game. What good is $1000 when it will turn to dust within a day or so?
Not sure it's a smart thing to just hit it off with real money and no knowledge. Best of luck anyway.
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I work in this industry, unless you already have a solid capital to put down then this short selling is not for you.
If you buy a trade in the evening based on predicted positive annual reports being release the next day first in the morning or a new product launch being received positively, the stock might jump by 5% so if you pumped in £200,000 you've just made £10,000.
Now with smaller amounts such as $1000 bucks, the trade will swallow up around 10$ in fees, the you have the difference in the buy-sell spread, the value of actual shares hitting your account will be around 970$ by then or so. The shares go up by 5%...that will redeem you to $1018.50, sell this and another fee is whcked on for 10$ bucks and you're back to $1008.
5% is a very good return on a single day.
Smalled cap is more volatile, companies can jump up by 20/50% in one positive annoucement, but they also tend to drop very hard. Smaller cap investing to me is closer to gambling on horses IMHO. Unless you do your research and invest in healthy businesses for the medium to long term.
I can go on rambling.
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Kid should be given a imaginary portfolio of stocks to track for a period so he learns the game. What good is $1000 when it will turn to dust within a day or so?
Not sure it's a smart thing to just hit it off with real money and no knowledge. Best of luck anyway.
good idea, I'll open the account and will do a 90 day dry run first (fantasy portfolio).....good call.
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for trading and learning the markets.....11 years old, should be interesting. Will update on trades and outcome. Will have me to answer questions, but picking the investment vehicle and deciding when to sell etc all on the kid.
This could actually be educational and profitable...how much "authority" are you giving him?
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Kid should be given a imaginary portfolio of stocks to track for a period so he learns the game. What good is $1000 when it will turn to dust within a day or so?
Not sure it's a smart thing to just hit it off with real money and no knowledge. Best of luck anyway.
Solid post
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I work in this industry, unless you already have a solid capital to put down then this short selling is not for you.
If you buy a trade in the evening based on predicted positive annual reports being release the next day first in the morning or a new product launch being received positively, the stock might jump by 5% so if you pumped in £200,000 you've just made £10,000.
Now with smaller amounts such as $1000 bucks, the trade will swallow up around 10$ in fees, the you have the difference in the buy-sell spread, the value of actual shares hitting your account will be around 970$ by then or so. The shares go up by 5%...that will redeem you to $1018.50, sell this and another fee is whcked on for 10$ bucks and you're back to $1008.
5% is a very good return on a single day.
Smalled cap is more volatile, companies can jump up by 20/50% in one positive annoucement, but they also tend to drop very hard. Smaller cap investing to me is closer to gambling on horses IMHO. Unless you do your research and invest in healthy businesses for the medium to long term.
I can go on rambling.
good info....I use to be a series 65 a while ago.
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This could actually be educational and profitable...how much "authority" are you giving him?
full including leverage...deal is first 1K is mine next 1K..... well thats gonna hurt the little tikes Christmas savings account.
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full including leverage...deal is first 1K is mine next 1K..... well thats gonna hurt the little tikes Christmas savings account.
sounds like a plan...give him enough freedom to feel some pain if he makes the wrong decision
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Ummm..... He is 11.
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Ummm..... He is 11.
she, yes
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sounds like a plan...give him enough freedom to feel some pain if he makes the wrong decision
hell if a monkey can pick stocks by throwing darts at a wall....and with PE ratios worth dick nowadays, why not.
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Good idea.
But I'd rather buy my son a bunch of silver with some cash to buy more physical when he deems fit. Might teach him the value of saving.
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I started with CFDs and a budget brokerpage. It's the only way to trade without losing your money to fees if you're on a low budget.
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good idea, I'll open the account and will do a 90 day dry run first (fantasy portfolio).....good call.
I'm not sure what the utility of the exercise is if not embedded in wider lessons about personal finance. Being an adherent of the efficient market hypothesis, I surmise that your daughter won't beat the market over the long term anyway (since virtually nobody will), so there needs to be some value derived other than putative trading strategies.
Maybe she ought to learn the basicmost rudiments of personal finance first, e.g., cash management (have her understand budgets -- maybe she can draw up a few for herself -- different types of accounts, some solid principles such as 'save x amount of income,' and so on).
Also, perhaps neglect to teach her some of the deviant economic theories you subscribe to, viz., neckbeardianism -- its obsession with shiny metals and calling variably for hyperinflation or the collapse of the economy every month will perhaps cost her a lot of money in the future, as it has in recent years for anyone who took it seriously.
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I'm not sure what the utility of the exercise is if not embedded in wider lessons about personal finance. Being an adherent of the efficient market hypothesis, I surmise that your daughter won't beat the market over the long term anyway (since virtually nobody will), so there needs to be some value derived other than putative trading strategies.
Maybe she ought to learn the basicmost rudiments of personal finance first, e.g., cash management (have her understand budgets -- maybe she can draw up a few for herself -- different types of accounts, some solid principles such as 'save x amount of income,' and so on).
Also, perhaps neglect to teach her some of the deviant economic theories you subscribe to, viz., neckbeardianism -- its obsession with shiny metals and calling variably for hyperinflation or the collapse of the economy every month will perhaps cost her a lot of money in the future, as it has in recent years for anyone who took it seriously.
the lesson is simple....I can have a child pouring over stock market data, learning investment strategy, and the complexity of money management......or stuck on minecraft for 2+ hours per day.
and I think us contrarian investors out performed the market shills over the last 4 years.....at least I have :)
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She'll blow the money and won't learn anything from it because she didn't have to work for it.
Now, if she used her savings to open up a brokerage account herself it may be a different story....
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the lesson is simple....I can have a child pouring over stock market data, learning investment strategy, and the complexity of money management......or stuck on minecraft for 2+ hours per day.
and I think us contrarian investors out performed the market shills over the last 4 years.....at least I have :)
Solid response.
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I would suggest to 'give' her a $100,000 virtual account. In case she's able to end break-even or with a profit after 100 paper trades, then you give her a $10,000 live account.
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My father did that for me.
1999. Had a 500%ish return in 6 months. No diversification. Pretty much wiped out 2 months later ;D I remember one stock was PSIX. Went from like 15 to 115 rapidly. Then bankrupt
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the lesson is simple....I can have a child pouring over stock market data, learning investment strategy, and the complexity of money management......or stuck on minecraft for 2+ hours per day.
and I think us contrarian investors out performed the market shills over the last 4 years.....at least I have :)
Good point, small investment for the potential return in knowledge and setting your kid down the right path.
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In b4 I can't believe she spent it at the mall.
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I would suggest to 'give' her a $100,000 virtual account. In case she's able to end break-even or with a profit after 100 paper trades, then you give her a $10,000 live account.
Drop a zero on both figures and we're golden ;D
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Drop a zero on both figures and we're golden ;D
Why does the virtual account size matter?
$1000 is good for forex or options trading (not that I would recomment this to a 11 year old), but a joke when she's limited to stocks/funds. You can't diversify a portfolio with that money.
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Then for his 12th birthday you can get him a piano so he can re-write Beethoven's 9th...
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Then for his 12th birthday you can get him a piano so he can re-write Beethoven's 9th...
Guitar...so she can outplay Santana
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giving a kid a 1000 dollar to let them learn to invest is like giving a kid a playstation to try to get them to program.
They dont have the tools or investment literacy to even make proper decisions.
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for trading and learning the markets.....11 years old, should be interesting. Will update on trades and outcome. Will have me to answer questions, but picking the investment vehicle and deciding when to sell etc all on the kid.
Fidelity Magellan mutual fund. Make him/her drop his small change/summer job earning into it. It will almost certainly outgain in a decade what can be had by active individual trading.