Small Ball: A Smart Way to Invest
By Marios Constantinou
July 9, 2008
Online Stock Investing…Ahh what a sweet, yet bitter way to make or lose a Dollar, Euro, Pound, etc. I currently buy stocks online and have been doing so for 5 years now. I remember watching people get rich instantly through online stock investing in the late 90’s. EBay, Yahoo, Cisco, and the list just continues. These were the big boys! These stocks are what MADE online stock investing. However, the success of such companies also helped to propel a greed of the masses; a lustful avarice for quick cash and while this approach worked well for several years (my dad bought me my first car with eBay profits) it proved to be the downfall for a multitude of bank accounts especially online bank accounts which made it easier to wire money to sites that provided easy online stock investing. In the past, the only means of buying stocks or mutual funds was through a broker. You would make a call or a visit to your broker and then pay via check. I remember when my grandfather used to invest he would have to wait 5 days for a check to clear before he could make a transaction. Today, millions of people purchase stocks online. Simple. One click = One transaction. You could be lying on a beautiful beach in Athens and with your laptop, purchase 300 shares of Google. And while you may purchase stocks online in a very easy manner, it is also just as easy to lose your hard earned cash. I remember buying Xechem (Xkem) the day news broke out that his Excellency, the former president of Nigeria, Olusegun Obasanjo endorsed Nicosan as a drug of choice in treating sickle cell anemia. I bought the stock at 10 cents only to see it drop to 4 cents a week later. Now this stock is trading at about half a penny. Had I utilized the services of a broker who would have in turn monitored the progress of Xkem, this massive loss (98%) could have been prevented if not minimized. But what’s the problem with all of this? We as online investors want to be independent. We don’t want to pay a broker $120 per transaction or have him/her take credit for our financial success. We want to consider ourselves financial gurus when in fact we are fiscal padawans. That is why I have shifted to mutual funds. Mutual funds provide for a safe way to invest online while giving you a decent shot for long term growth. Who ever said playing small ball was a bad thing? Some of the biggest success stories were based on small ball. Look at the 1996 New York Yankees, the 2004 Greek Football team, Bill Gates, Michael Bloomberg, and the list goes on and on. A great example of mutual fund success can be taken from US Global Investors (GROW). Its ticker symbol is very indicative of its chart. From 2006 to 2007, this international mutual funds company jumped about 600%. Wow! Pretty much, if you’re going to commit to mutual funds, stick with international mutual funds and alternative energy mutual funds. These types of investments will not only help you sleep better at night but will help pay for your kids’ college tuition and wedding expenses. Another great international mutual funds company is MERK HARD CURRENCY (MERKX). This mutual invests in international hard currencies such as the Euro, Swiss Franc, Canadian Dollar, etc. It has a Morningstar Rating of 5 stars and is a great way to get started off to safe, online investing. Overall, I have assessed that mutual funds are the way to go for a profitable and stress free business and personal life. See you in Athens…oh and do yourself a favor: leave your laptop at home…