This journey all started when my daughter Jacey, at age 12, kept asking me for money. I finally got fed up and said in frustration “Why Don't You Get a Job?” Her response was... “Daddy, I'm only 12... I can't get a job”. To make a long story short, she asked me what I was doing and if I could teach her. It did seem strange at the time, but she wanted to learn and I wanted to spend more time with my little girl.
I wanted to teach her how to make money and not just ask for it... I wanted to teach her how to make her own money.
It took a while to find a simple stock trading strategy that a 12 year old could understand, something simple, safe and profitable.
She also needed to know some basic rules of the stock market.
How it worked and why the stock market is important.
Here are some basic truths about the stock market I shared with my 12 year old daughter.
#1. Don't make it complicated, keep it simple and easy to understand.
#2. The stock market as we know it today, has been around since 1602, The first stock certificates were sold, door to door with the promise that the company shared the profits, with their investors.
#3. The price of a companies stock is the public's opinion, the real value is in the cash flow, profit margins and earnings growth, management, and market share, etc.
4. After the stock market crash in 1929, President FDR formed the S.E.C. Now, All corporations are required to inform shareholders of everything.
#5. When a company makes money, they share their profits with their shareholders. If you own their stock.... you get a Dividend check.
#6. You only have to own the stock 2-3 days to get a Dividend check, not all year.
#7. Stocks only move for one of two reasons... A Known events and an unknown events.
#8. Stocks prices move up... down... or sideways. Knowing when they are going to move is where our money is made.
#9. Don't be greedy, there's plenty of profits, no one wins all the time.
I wanted to teach her how to make money and not just ask for it... I wanted to teach her how to make her own money.
It took a while to find a simple stock trading strategy that a 12 year old could understand, something simple, safe and profitable.
She also needed to know some basic rules of the stock market.
How it worked and why the stock market is important.
Here are some basic truths about the stock market I shared with my 12 year old daughter.
#1. Don't make it complicated, keep it simple and easy to understand.
#2. The stock market as we know it today, has been around since 1602, The first stock certificates were sold, door to door with the promise that the company shared the profits, with their investors.
#3. The price of a companies stock is the public's opinion, the real value is in the cash flow, profit margins and earnings growth, management, and market share, etc.
4. After the stock market crash in 1929, President FDR formed the S.E.C. Now, All corporations are required to inform shareholders of everything.
#5. When a company makes money, they share their profits with their shareholders. If you own their stock.... you get a Dividend check.
#6. You only have to own the stock 2-3 days to get a Dividend check, not all year.
#7. Stocks only move for one of two reasons... A Known events and an unknown events.
#8. Stocks prices move up... down... or sideways. Knowing when they are going to move is where our money is made.
#9. Don't be greedy, there's plenty of profits, no one wins all the time.
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