MY son is involved in a stock Market Club at his school and I want to make it an interesting, learning and money making experience. Any one have any experience in this area, I got many of my own ideas just looking for some more. P.S. not really interested in hearing any negative comments about this individual decision….Thanks…..
I have one. I often watch MadMoney, Fast Money, and in these times Kudlow & Co on CNBC. He has actually given me some of his money to invest for him which I have in Nintendo since the Wii came out it’s been on fire and a few others ie Gamestop and Activision. Things he can relate to and learn how the money can appreciate over time vs staying the same in his piggy bank or barely making anything in his bank account I find keeps his interest and fosters learning. I’ve used the same principles with my teenage daughter given her interests, ie Apple, Aeropostale… As time progresses introduce them to increasingly deeper levels of understanding of the market (75% of all stocks move with it) their sectors (50% move with them) and then their stocks fundamentals and technicals vs their competitors…Also introduce them to commission fees, slippage price between bid/ask capital gains tax, which can eat up the profits of a small investment…and inflation using real life examples if possible which shows how money in a bank account will often end up worth less in the future then it is today.
I would also have them do reports they could hand into their teacher for grades or extra credit on some of the most successful investors of our time, Warren Buffet, Peter Lynch, William Oneil (Investors Business Daily), Jim Cramer…..and what did they credit to their success
Some generalities:
We need money to survive, it doesn’t matter how we make it or how much we make, but whatever we have we might as well optimize it as best as possible. Any 10 contiguous years S&P has averaged ~+12%, no other investment available to the average investor can claim this. Whereas you can no longer buy and hold stocks as in the past, you need to buy and homework as Cramer says, make sure profits are taken along the way and either re-invested in some good mutual funds where the managers do the work (found via fund screener on morningstar.com – free) or into the next stock candidate, or on the sidelines in cash waiting for a dip to buy more….