Too Young for Trading?

A 17-year-old blog reader asked me recently if he is too young to start learn trading and how can he start. That got me thinking. Mmm, how would I teach my girls if they expressed interest in trading?

You need to have spare money

Well, how young one may start to learn trading depends on when he can save up the capital to start trading. Nowadays, this barrier is lowered greatly with forex brokers that allow trading of nano lot sizes. A broker I know of allow trading of any lot size and this allows starting capital of US$500 and still allow proper money management to be applied.

It is easy to lose everything

This is up to individual. I was thinking some parents may like to let their children understand the risk of trading. Let them start trading without any rules. Let them fiddle and familiarize with the trading platform. Let them experience margin call, let them experience account blow-out. US$500 is cheap to learn all that.

You've got to execute the trades without fail, even if you've lost the last 10 trades!

After that, I would give my girls a decent trading system (including money management rules) that they can trade without interfering their studies (and their studies also don’t interfere with their trading too!). I would monitor that that trade the system consistently even if they experience losing streaks. Children are unpolished gems. I would think children are more likely to follow trading systems.

Side dish

Also, importantly, treat it as a means of bonding with our children, a game that we can play together!

Is this how you will teach your children how to trade? Or would you even teach them at all?