When he was in elementary school, Kenny Hong used to get up
early in the mornings to watch cartoons on television like X-Men
and Garfield.
Now, as a fourth-year business economics student, he wakes up at
6 a.m. to follow financial markets on CNBC.
Hong is one of many UCLA students engaged in investing on the
New York stock exchange on a daily basis.
He spends a significant portion of his time on such activities,
whether peeking at fluctuating stock prices online as he works at
the Union Bank of California downtown or leading weekly meetings as
head of the Undergraduate Investment Society.
“(Investing) is really interesting ““ it’s
something different every day, and it really tests my skills and
ability to create successful strategies,” he said
Like most investors, Hong loves the rush associated with a
successful trade move.
“The best is when positive news breaks out about a
specific stock and I will invest,” he said. “In a
matter of minutes sometimes, the stock will rise almost 20
percent.”
Hong began investing in January 2000 when he used money saved up
from working over the summer to start an online portfolio with
Datek, an Internet-based brokerage. At the time, financial markets
were experiencing some of their best figures ever.
Since then, times have changed dramatically. Due to the downturn
in the economy, Hong said the value of his portfolio is down almost
30 percent from its initial worth.
“In the beginning, I didn’t know too well what I was
doing, but I am learning from the mistakes I have made over the
years,” he said.
His current investment strategy involves playing the market
mostly in the short term ““ holding stock for a few weeks at a
time and only dealing with stock from five to 10 companies.
Though Hong doesn’t make monetary transactions every day,
recent events on the international scale have caused him to be more
cautious and to invest even less. But as closure to the war on Iraq
seems inevitable, he is optimistic.
“This is good news ““ people feel that once the war
is over the economy can recover properly,” he said.
In the potential aftermath of the war, Hong advises investors to
be careful in their stock selection and to steer clear of
technology stocks in the short run.
“I would say investors should look into companies that can
make money of the war, such as construction,” he said.
As president of UIS, Hong has formed a network of fellow
investors who also choose to wake up and track the fluctuations of
the markets as many UCLA students are still dozing away, oblivious
to the world.
With a cup of coffee to keep him company, Hong uses AOL Instant
Messenger to bounce early morning ideas off his investor friends
while reading the Wall Street Journal and commentary from
professional investment analysts.
And while Hong sees investing on financial markets as his
career, he believes everyone should be somewhat familiar with
trading.
“It’s the best way to build your wealth and
it’s quicker than just working a day job,” he said.