A little bit of healthy spirit of competition does help children as they live largely in the vital. What she should be taught is that instead of crying she should improve wherever there is a need to improve.
The spirit of competition should change into the striving for excellence. Then at an appropriate time the child’s attention can be diverted towards doing well for the joy of doing it and for progressing rather than competing with someone else.
Apart from that it is important to help the child discover and develop her own unique potential and strength. To bring out this unique element is important not only to bolster the child’s confidence but to give her direction as well.
The child can be explained that the real purpose is to develop faculties and progress which can be done without competing with anyone.
Affectionately,
Alok da.