A Peculiar Education

There are three things we are learning as a family that pertain to trading. These are just the items I think are important but remember, there are no professional traders over here.

The first skill is learning to read charts which is called technical analysis. The course we are watching uses the Japanese candle sticks. The formation of the candle tells us the opening price; closing price and the high and lows of the day. The candles together tell us a story of where the stock was and the possible direction it may head. The course does not provide the candlestick formations because the creator of the course does not trade using that method. Her course is geared towards locating where the big institutions buy and sell stock.

The second skill is fundamental analysis. This is the evaluation of the financial health of a company. This includes looking at the financial statements, listening or reading earnings calls; reading the annual reports and the quarterly reports. I am also looking for the company’s risk; the future direction of company, competition and the health management of a company.

Lastly, trading psychology is one of the most important parts. I have heard and read that without a proper trading psychology a person can not become a profitable trader hence why 95% of traders fail. I am reading the books; watching videos; listening to podcast about trading psychology and the theme seems to be believe you can do it; have no fear of the markets; limit your losses and be disciplined.

Learning about the different markets is also very useful. What happens in the futures markets can affect the stock market. Since we are entwined with nations all over the world, their news events matter because it affects our stock market.

I am reading about the US and world markets using the old fashion way of newspapers. I find it is easier to turn a page than continuous scrolling and back clicking after reading short articles. It is quite entertaining to the young people to go outside and pick up the paper and to watch their parents read it. Reading the financial news, you become familiar with companies that move the markets and economic conditions that affect your investments or stock trades and now ones personal life.

How do we home school using this information?

• I read and talk with the children about company events from the newspaper.
• We watch videos, discuss and chart companies from different sectors.
• I read to them sections of trading psychology books that I think will be helpful not just in trading but with their own lives.

I have a goal for the family, we are learning how to trade in stocks and options. One day I would like to learn commodities, Forex and Futures however, stocks and options are first. I think it is important to learn different types of skills and this one is very important to me.

Money can be made in the markets and an education without this knowledge just does not seem complete to me. The children may or may not become traders but it is still useful to them in long term investing.

I have had one the the children take a short stock market class made for children. The weekly class learned something about the stock market; how it works and paper traded which is fake trading.

As a family, we adults are taking two stock market courses and the older children are learning right along with us. They are being taught where to enter and exit a trade; how many shares to buy; risk management and which companies to trade.

Yes, we know most traders fail but that is not the point of teaching them this skill. We do not want them to think that only certain types of people can make money in the market. It is a skill that can be learned and used. I believe it will help them grow in knowledge of how the financial markets work; how the economy runs; how companies conduct business; and personal growth for them such as discipline and patience.

We will see how it goes!