Paper trading, or a stock market simulation, is one of the easiest ways to learn about stocks first-hand without the risk of losing your money, your real money anyways; in other words, paper trading is just another term for a stock market simulation. It sounds great, doesn’t it? It’s all the fun without the risk. So why should kids do it?
Participating in the stock market, thoughtfully, of course, has many great benefits that extend to both children and adults. For adults, the benefits are more financial in that they can dip their toe, so to say, and learn about what investments are smart and how they can navigate the what seems like, a turbulent world of stocks. However, for kids, there is much more to gain.
Joseph K., an eighth grade student from Lexington Junior High School who is a paper-trader himself, stated that he believes that it taught him “how to manage my finances and how to be responsible with my money and management skills.” In addition, benefits encompass those that are not related to finances or money at all.
I’ve found that to be successful in paper trading I have to keep up with the news, looking out for launch dates of artificial intelligence- focused companies to the general goings of politics. This has made me a more worldly and aware person, which has been very useful in school, more specifically my history classes.
Another skill that I have acquired due to my involvement in paper trading is that I can make cause and effect connections, obvious or not. The news that I read about is essential in making predictions or interpreting the rise and fall of stocks. In conjunction with this asset, I have also learned how to interpret trends in graphs, which I have found useful in my math, english, and science classes.
Lastly, paper trading has taught me, as well as many other kids, how to manage risk. I am able to logically think through decisions and calculate whether or not the benefits outweigh the costs. Sometimes, the decision has to be made fast and it has taught me how to be quick on my feet and make the hard decision when I have to.
This simulation gives kids the opportunity to learn so much by doing and by holding them responsible for their own purchases, they will be able to grasp why it is important to be responsible. Overall, I would definitely recommend paper trading over videogames for how much you can gain from it.
Chanah Park/Cypress High SchoolSophomore
<Chanah Park/Cypress High SchoolSophomore