Investment clubs and trading groups
- Thread starter Rumblefish
- Start date
I remember a neighbor telling me about his investment club. He said a broker was one of the directors and churned the account. He says they lost money.
I have participated in a few such groups. The best ones have been those where the participants are each following a similar strategy.
I was in one and helped to get it started. It was great at first - everyone was excited, we brought in new people, exchanged ideas, etc.
Then each week those attending the weekly meeting would get less and less and less. The club just drifted into nothing.
If you can keep the enthusiasm and support going, it could be a good idea but good luck keeping that going, esp if you are dealing w/ people that do not do this for a living. When it's a hobby, you treat it like a hobby.
Then each week those attending the weekly meeting would get less and less and less. The club just drifted into nothing.
If you can keep the enthusiasm and support going, it could be a good idea but good luck keeping that going, esp if you are dealing w/ people that do not do this for a living. When it's a hobby, you treat it like a hobby.
We set up collective investments as partnerships and LLCs - observing the de rigueur formalities of pooled investment vehicles, and securities laws with respect to the offering of interests in the fund. Investment Clubs accounts are like general partnerships in many ways. Investment Club groups of people are great opportunity to pool resources of all kinds, but the mechanics of actually pooling capital should utilize a more sophisticated vehicle than an Investment Club account. IMO - but its your money on the line.
Rumblefish
Guest
With the internet and facebook, there is no need to meet in person anymore.
Investment clubs been around even before the internet.
The investment club that you started was a 'social club' with no charter or shared 'investment club account' with a brokerage.
It's not really a club if club members don't have any finanicial interest or financial benefit from the club. Keep the club small and only accept quality members under 15 and prepare to kick out non-performing club members who don't contribute the club.
In each club you need a club leader or group leader that manage the club. An investment club has a 'charter'
Investment clubs been around even before the internet.
The investment club that you started was a 'social club' with no charter or shared 'investment club account' with a brokerage.
It's not really a club if club members don't have any finanicial interest or financial benefit from the club. Keep the club small and only accept quality members under 15 and prepare to kick out non-performing club members who don't contribute the club.
In each club you need a club leader or group leader that manage the club. An investment club has a 'charter'
To me, the very name "investment club" smacks of amateurism and risk aversion. These are people unlikely to ever short anything or to chase momentum successfully. "Trading group" is a more advantageous name; at least reasonable traders don't expect to win every trade or to always have a profitable quarter. Finding traders who all share the same trading philosophy will be the really difficult part.