| finition of an investment club is simple: a group of | | | | how the stock market works and what it can do for |
| people who share an interest in the stock market | | | | them. An investment club is a safe environment in |
| pooling their resources into one large investment. | | | | which you can invest a little bit of money and not |
| Defining how an investment club works is more | | | | worry about losing a large amount of your hard |
| complicated. | | | | earned dollars when something unexpected happens. |
| In most cases the investment club will be registered | | | | * Amount of money to invest. Don't think that you |
| as a partnership and the members of the club will | | | | need a lot of money for investment purposes to |
| make decisions together on what stocks they | | | | start an investment club. The opposite is in fact true: |
| consider to be a good investment risk. | | | | you don't need to have a lot of money to invest to |
| The majority of the time the investment decisions | | | | start an investment club. You can set a minimal fee |
| will be made after some research has been done | | | | for each month's contribution that is fits into your |
| regarding the stock that is under consideration. This | | | | budget. You'll have the chance to determine what |
| will be discussed at length further in this book. | | | | the minimum monthly contribution should be each |
| An important feature of an investment club is that | | | | month when you have your first meeting of the |
| the members are there to have fun as they invest | | | | investment club. |
| their money and learn about the stock market. | | | | * Combined investment money. On your own you |
| Making a profit isn't the only goal of the club and | | | | may not have enough money to invest in the stock |
| members are encouraged to have fun as they invest | | | | market in a way in which you may be able to realize |
| their money. | | | | a profit. However, when you combine your |
| An investment club isn't for those people who are | | | | investment dollars with the dollars of others in the |
| looking for a fast way to make some easy money. | | | | club you'll have a significant amount of money to |
| People who want a quick turn around are | | | | invest in the stocks that you've been watching and |
| discouraged from joining an investment group and | | | | think may be successful. Keep in mind that just as |
| investing on their own. | | | | there is strength in numbers there is also a shared |
| A main feature of the investment group is to start | | | | sense of security when you're not investing alone. |
| to learn how to invest your money and to invest for | | | | * Diplomacy. One thing that you should keep in mind |
| a long term rather than a short one. | | | | is that your voice will be part of the larger group and |
| There are several things that you should keep in | | | | you may not always have a say in which stocks you |
| mind if you are thinking about starting an investment | | | | want to invest in. If you're unable to sit back and let |
| club or have in interest in joining one that already | | | | another decision take the place of something that |
| exists. | | | | you would rather see, then an investment club might |
| Make sure that you understand all the reasons why | | | | not be for you. You'll need to have the ability to let |
| you should start an investment group and the | | | | the majority rule whenever a decision is made. |
| requirements needed to be successful as a group. | | | | * Learning experience. You should be prepared to be |
| The following is a list of important ideas and | | | | satisfied to never realize a profit from the stock |
| information that you should consider before starting | | | | market. One of the important goals and features of |
| your club: | | | | an investment club is that you benefit from the |
| * Be realistic. If you're starting an investment club to | | | | learning experience of being with other people with |
| make a killing in the stock market, you'll most likely | | | | the same interests in the stock market. If you never |
| be very disappointed. The goal of an investment club | | | | make a penny you should still be pleased with your |
| is to learn more about the stock market and if you | | | | participation as part of an investment group. |
| have dreams of becoming rich you'll be starting the | | | | Starting your own investment club will be a |
| club for the wrong reasons. Joining an investment | | | | pleasurable, and perhaps profitable, way to spend |
| club means joining for a long period of time. | | | | time with other people that share the same |
| * Expect to be an amateur. Starting an investment | | | | investment passion that you do. |
| club doesn't mean that you have to be an expert on | | | | You'll be able to learn about the stock market in a |
| the stock market. In fact, an investment club is ideal | | | | safe and secure environment with other people that |
| for a group of amateurs who want to learn about | | | | understand your fascination with the stock market. |