Savvy young investors in the money market

Savvy young investors in the money market

WHILE his classmates busy themselves collecting virtual gold in World Of Warcraft, 18-year-old Ace Tan is making real money in financial trading. In between juggling coursework for his early childhood studies diploma at Ngee Ann Polytechnic, he has been wheeling and dealing in the options market, a six-month-old hobby which at one point netted him $5,000. 'I used to play online games like MapleStory, but I found them too immature,' said the second-year student. 'Options trading is more fun and exciting. Plus with this headstart, I'll be better at financial investment than my peers in the future.' He is among a small but growing fanbase of those in their late teens and early 20s who are invading a domain once dominated by yuppies and retirees. Nine investment clubs have mushroomed in tertiary institutions here in recent years. Nanyang Technological University's Investment Interactive Club was the first in 1999. The latest, formed in January, is Republic Polytechnic's Investment and Finance interest group. The others sprang up in the past five years, formed by money-minded youths at all five polytechnics, the three major universities and Raffles Junior College. Interest has also spread informally. Some picked it up from investment-savvy family members, like 20-year-old Samuel Goh, who learnt about stock trading from his uncle, a retired teacher and part-time trader. Another, 15-year-old Lim Gee Gwee, is learning the ropes from his cousin Ace. Others are catching the fever from other youth eager to share their passion. I-Cube, an association formed last year by the three universities' investment clubs, regularly organises financial literacy events for students from secondary schools, junior colleges and polytechnics. 'This trend has to do with the rising affluence of Singapore and the region,' said NTU business professor Christina Soh. She added that an increasing number of parents now trust their children to manage their investments, too. Some young traders handle up to $200,000, turning to their parents and relatives for financial backing. Mr Goh borrowed $10,000 from his uncle to kickstart his stock trading hobby, while Ace cajoled his parents to shell out $9,000 for a four-month options seminar and another $2,000 for investment capital. Ace's father, air-conditioning businessman Tan Choon Hwa, said: 'I see it as an investment. He will learn life skills and good finance management.' But the trend is risky. Young traders can win, and lose, big. For example, Mr Goh has made as much as a 90 per cent profit on his principal investment, and lost up to 50 per cent of it, too. But they chalk it up to part of the learning curve. 'I was scared at first when I made losses,' said Ace. 'But over time I learnt from my mistakes and I grew more confident.' For rank amateurs, there is also the prospect of going pro. Singaporean Kelvin Chan, 25, started dabbling in forex trading in 2005 while studying information technology at the Queensland University of Technology. A year later he was reaping profits consistently. Impressed by his skills, a representative from a London-based fund management company, whom Mr Chan met during a forex forum, offered him a job as an investment trader in January.