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Many a magician both got their start, and to this day, perform childrens magic shows. It takes a special magician to venture into the world of small people, who possess a different mindset from adults. There is definitely a different psychology involved, and what works for adults will, in all probability, make you look silly when performing for children.
When children are properly coaxed, they do not have the shy factor present in most adults. Whereas adults have a limit as to how involved they will become in a performance by a stranger, children will become totally involved -if- you know how to encourage them to do so.
Children want to be a part of the show. They respond not only to your magic, but to one of their own who has been brought up to help with your magic. They will respond equally well if you can develop effects that let them shout out magic words or answers to questions that you seem unable to conjur; questions like "What happen to the ball?" when they can see the ball and you act as if you can't find it. They want to feel smart. And if you can let them shine, instead of simply trying to entertain them, you'll grab their attention and their wonderful little hearts.