| For many, trading in the foreign exchange (FOREX) | | | | manner. Some clubs go the entire route and actually |
| market lends itself to solo or isolated activity. | | | | form a legal partnership, where all expenses, losses |
| However, it does not have to be that way. It is | | | | and gains are shared more or less equally and the |
| possible to be a part of a support group such as an | | | | appropriate tax forms filed after year end. |
| investment club. This approach may help to make | | | | An alternative, however, would be having a club |
| your trading experience easier and can help you be | | | | which is set up and operates informally. This means |
| more objective and successful in your trading. Here | | | | that everyone would likely trade their own account, |
| are some ideas to consider prior to starting a FOREX | | | | rather than a joint account as with the more formal |
| trading club. | | | | clubs. This has the obvious effect of limiting the |
| Understand Reasons for Organization | | | | internal paperwork otherwise necessary for most |
| Because trading tends to be an isolated activity, | | | | formal clubs. Beyond collecting dues and sharing |
| many traders do not realize the benefits stemming | | | | software or book purchases, the administrative |
| from associating with like-minded individuals. These | | | | demands are minimal. Joining an existing club, formal |
| benefits include sharing experiences; learning new | | | | or informal, should also be considered. A club may |
| strategies; keeping your ego in check; keeping your | | | | start informally and then transform to a formal club |
| trading results in perspective; sharing costs for | | | | based on the desire of its members. |
| software purchases; keeping your interest level up; | | | | Form Mission Statement Early |
| and, exerting group power in the event of issues | | | | At the outset, perhaps the first meeting, put all |
| with a particular broker. | | | | potential members at ease with a clear delineation of |
| Contemplate Potential Members | | | | purpose and goals regarding the club. This helps to |
| You should first try to include people who you can | | | | avoid confusion later and is invaluable in keeping |
| trust and who trust you. These can help you when | | | | everyone on the same page. Naturally, those that do |
| the going gets rough. The members should also be | | | | not agree with the mission reserve the right not to |
| persons who are willing and able to be active and | | | | join and, consequently, save time, money and |
| contribute to the process of running the organization. | | | | frustration from being in a club that does not suit |
| The prospective members should also have at least a | | | | their purpose and goals. With an informal club, the |
| general interest in investing. Having members who are | | | | purpose may be just to share the experiences of |
| of sound judgment and are good at making decisions | | | | others and to learn more about the opportunity of |
| can benefit any organization, including a FOREX club. | | | | FOREX trading. A formal club may actually set |
| Determine Level of Formality | | | | financial goals, determine criteria for brokers as well a |
| Just because your organization is an investment club | | | | currencies traded. |
| does not mean that it has to operate in a formal | | | | |