Topic: Is it legal for our kids to learn trade? - page 11. (Read 1270 times)

that's what I thought. those without financial freedom cannot manage their trades. their interests are like slot games. they will not understand the risks very well by depositing their small money into the trade. even teaching them demo trading is also quite risky. they are close to technology when they know how, of course, learn, some functions of trading tools that can be performed independently.
this is quite risky, it's better not to teach anything from the beginning first. just tell them to learn to invest in Bitcoin. not trading.

They can be exposed to demo trading at a mature age, but they should not be left to make financial decisions on their own until they are responsible enough to work for their own money. If you are a full-time trader that your kids see always on your computer looking at the charts, they will be curious to know what it is, from that early age, instead of shutting them up, you can introduce them to the concept of trading after which you watch their interest. For any of your kids that pick an interest, you have enough time from their early age to really groom them in trading and formulating new strategies for themselves.

I hope you don't teach him. I know they must be curious about making money trading. but at that age, they don't have financial strength yet. the money they get is also the result of gifts from their parents. this will be bad for him and also you and even the parents of your childhood friend.

maybe you can teach him about Bitcoin investment. It is better. Bitcoins can be purchased in small amounts, depending on the ability of the remaining money that he can save for a long time. although still not recommended until they have clear sources of finance.

why not, maybe he has good instincts and talent in trading! but you have to ask him first whether he has an interest in trading or not. teaching to find out what talents your child has from an early age will really help him in the future, many beginner traders do not have special teaching in trading from an early age so they start trading recklessly.

You can always accompany your kids and watch what he does while trading, especially in terms of controlling emotions, you have to teach him, because a trader who is greedy and lacks emotional control will only continue to lose, and never make a profit.

Its legal but can you take the risk on what might happen to your child? Remember early experiencing a big failure might create bad scenery to him and worst he can't handle the pressure towards what he/she learn about trading's. Its really good to engage them with this significant earning option so that they became more wiser on investment when they grow but this need full of attention since they are still a child they are prone to make mistake and if they are misguided they might do bad decisions which can harm them.

I actually interested to teach young minds who have carried such eagerness and interest. In fact, they are not too young to grasp ideas from what we taught to them to think that we are wasting our time. Well, the idea is just about learning to trade and it was okay, but if it needs to do actual trading and create an account, this could be a problem, especially if they are asking for KYC. I know that there are exchanges that never require KYC which is an avenue for them to practice more and do trading. Just like the normal thing we do, start with small amount and keep that limit until they become ready to big responsibility.

For knowledge sake maybe it is okay to teach the children what trading is at least they can know how daddy makes some extra money but for real trading, this may be an exercise in futility if the child have not shown the zeal to trade because trading is not easy. Most times it takes a trader some lost amount to be serious and in the case of children, you may be the one to refill the account when it is blown out so the seriousness and commitment to learn may not be there. I won't emphasize on legality because if some sites have placed some restrictions there regarding age by KYC then you can't do anything about that but to teach isn't bad so that the child understand financial freedom on early stage.

Unless you want to teach your children about Rich dad poor dad too soon, you won't need to teach them about trading when they are immatured.

If you areb't even a trader of average ability, I don't recommend your initiative. Need special guidance to teach children how to trade, not online, not books, direct parents. Also, no real money, full demo account.
And I think if you look at the average trading platform conditions (with KYC), then clearly the most recommended age to start is at least when they have an ID card (adult). Regulations in a country that I found don't even allow doing business with minors. In conclusion, teaching children to trade is highly not recommended.

In terms of legality, A minor is not allowed to trade especially on US base exchange due to their policy. But he can always trade on exchange that doesn’t have KYC requirements like DEX or P2P trading.

I don’t mind my kid exposed on risk but with some limitations on how much many he can risk on it. This actually good to open his mind about the danger on trading so that he will be more careful by the time he grown up.

If you already made up your mind that it is too risky, why bother asking?

Anyway the safer method to approach this is whether the person understands the importance of money and why they need to save money or grow it passively. If they are a careless spender, if they get more money at hand they will waste it - something that is difficult to identify at younger age but possible from upbringing.

I would suggest the kid's parents to talk to him/her about it first and set up their own piggy bank and see if the kid has interest in it. Then only go for trading on a dummy market. That is how we old school people started here, by saving up remaining change on a piggy.

If the child has a desire, then he will try to do this with or without your help, and in this case, let it be better now under your supervision.

Try to find and buy trading textbooks for him, it will take some time for him to learn. Here are some good books for this:

- "Reminiscences of a Stock Operator," written by Edwin Lefèvre
- "The Intelligent Investor"
- "Market Wizards" and "The New Market Wizards." Both books consist of interviews with some of the most successful traders of the past half-century
- "The Disciplined Trader: Developing Winning Attitudes" written by Mark Douglas
- Trader Vic II: Principles of Professional Speculation, written by Victor Sperandeo
Source: https://www.investopedia.com/articles/personal-finance/090216/top-5-books-become-professional-trader.asp

By clicking on this link you will also see links to Amazon where you can buy these books.

Try to explain him that you can only become successful in trading if he has enough knowledge for this. Let him learn all the available information, and then try. Explain to him that this is a difficult task and involves great risks.

Let him succeed!

Will children be interested in learning the trade? I hope what you say that your friend's child is interested in trading is not a lie, I don't think children will be interested in trading activities and even if there is you will not face any problem dealing with it but that is if you have the right knowledge and not just teaching that trading is a way to make money but also need to tell that can lose monye if not done right.

It varies from one to another but it is depend on the child’s willingness to deal with money, profits and losses.
what is most frightening is that the child’s psyche is affected by trading so that he becomes frustrated if he loses or euphoria and waste money if he wins, so it is better to ask him to learn using modeling, which enables you to trade with money It is not true, and thus developing his skills while learning some skills that enable him to generate income, and then, after he is ready, he can start trading.

about legal if your child cant open account before 18 then it it is illegal to trade, some CEXs will not allow him to start trading.

If parents explain all or most of the consequences of trading, how easy it is lose money (just dont push on them too much, it should be just a warning, not a scary story), then I dont see nothing bad if kids would trade with their own money. If they get profit, that would be wonderful. If they lose most or all money, that would be a valuable life lesson. They will learn how hard it is to earn, easy to lose, that they must learn more to achieve more.

Depends on your country's law OP. Most countries are requiring 18 as its minimum. Nonetheless, if someone below 18 years of age is addicted to charts and technical analysis and was doing well, the guardians or parents can simply create an account for the kid to use it. If doubtful like your concern OP then why not make him a demo account for him to prove if it is worth it or not? Or you can even provide a real account but with only a minimum balance. Binance minimum spot trade is $10 or $20 only. No leverage trading, of course, otherwise the kid is just biting more than it could chew and must rather focus at school.

Trading will also turn into gambling if you trade without any knowledge. At the age of 15, he already knew about money, and what the boy wanted was to make money fast, not seriously learn about trading. This age should focus on learning, if you teach him about trading, he will probably neglect to learn. As OP said: he doesn't want to lose the original amount, which means he is still using his parents' money. If he loses, it's easy to steal money from his parents. There are more disadvantages than benefits to letting a 15 year old know about trading.

When I was a kid in age 10 - 15 years old, my parents mostly did not allow me to touch money. They bought food, juice, water and other things I need for my life and my education, they did it because they want to protect me from many risk related to money.

They did give me very small amount of money each day just because they wanted me to enjoy childhood fun like buying a candy, ice cream then enjoy eating it with friends at school. That's all and with such small money, I can not do anything else.

I don't agree to let your kids knowing about trading too much as they have yet been able to earn money and at such ages, they should concentrate on learning. That is better for their later lives. They should have time to enjoy most interesting time in life of each person.

If parents can not control themselves in trading, why do they think of exposing their children with trading and believe that their children will be able to control emotion.

I implore you to do the right thing and advice in the proper way. No country would allow any children below the age of 18 to trade, and even at 18 years old, I will still not encourage it because the child just entered adulthood, and what he starts embracing at that time might be what will impact him for the rest of his life.

Trading is challenging and addictive, and it might not augur well for children, I had passed through this stage, so I know what I am saying. Even if the lad must trade, first expose him to the reality of life in terms of business and other means to make money.

Later after years, trading could be introduced if he is mature enough for it.

There is no need to rush!

Trading simulator! What is more important is to get the concept of trading first-hand. The KYC and other legal stuff will come later on.

Unless otherwise they are given the correct information of what to do and what not to do in the first place. Come on! Life is big risk in itself.

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In my opinion, it's not a bad idea to teach your friend kid about trading or finance in general, as long as they are given correct information on controversial topics like "money".

When I was 18 or 19, I learned the basics of trading and investing through an online game called "CASHFLOW Classic" by Robert Kiyosaki. The premise of the game is to mimic real-life scenarios of growing your wealth from scratch. You are given a dream to escape the "rat race," and you must do everything you can to grow your money passively by earning through incomes, trading stocks, investing in properties, etc. I think this is probably the best approach to teaching someone the basics of "financial education" because it's more fun and enjoyable than diving into trading right away.

Afterward, your friend kid can use a trading simulator like this basic one^[2] and later progress to a more complex^[3] trading simulator. You can't just teach someone all the jargon involved in trading without them seeing a visual representation of what's happening when they buy a crypto/stock at a lower price and sell it later at a higher price.

[1] https://www.richdad.com/products/cashflow-classic
[2] https://bitcoinflip.app/
[3] https://cryptoparrot.com/