Investment Club

ian21

Hi,
Im looking to get together a few people(max of 20 for legal purposes) who would be willing to invest say €50-100 a month in the stock/shares market.Investment Clubs are apparently the next big thing in ireland...
see http://www.ticn.com/ticn/about/press/20001022.asp.
or www.ise.ie/getFile.asp?FC_ID=170&docID=189
That way we could pool our resources. I want to start investing but theres no place that would take 50 a month. The people in the club would voter on shares to buy etc. Im guessing wed nominate a co-ordinator, chairman, treasurer etc and everyone wud have access to the details and statements etc to keep everything transparent.

nesf

No, not my thing. And I don't think that trying to find people online is a good idea. Personally the idea of forming a partnership involving investing money with people I don't know, really does not appeal.

Plus I've always been wary of investment clubs.

dunkamania

Ian,I sent you a PM.

jay567

I agree about the "meeting ppl on the web to pool money together" is a bad idea.
But would anybody be interested in maybe a mail group, that shares ideas / leads on shares. Im not sure how it would work, but the rule of not being able to talk about a company here can make it a bit difficult to get ppls advise/opinion on company stock.

Before anyone says it, all im suggesting is a mail list of interested ppl. Noone has to take anyones advise. Pump and dump would not be a factor.

jay567

PS ive spoken to a few of these investment clubs, the new ones coming out are just ppl on the make, stay away from them.

super123

Hi Ian,

Here are some resources you could use

www.fool.com - Discussion Boards
www.askaboutmoney.ie

Selik

jay567 wrote:

I agree about the "meeting ppl on the web to pool money together" is a bad idea.
But would anybody be interested in maybe a mail group, that shares ideas / leads on shares. Im not sure how it would work, but the rule of not being able to talk about a company here can make it a bit difficult to get ppls advise/opinion on company stock.

Before anyone says it, all im suggesting is a mail list of interested ppl. Noone has to take anyones advise. Pump and dump would not be a factor.

Easiest way to go about this would be to setup a private group in Yahoo Groups no? I'd be interested in that anyway!

Andy-Pandy

Ian,

Im in an investment club with 7 of my mates. We are up 150% for the year, but its taken a huge amount of work between us all to get there. I cant imagine getting into a club with a group of strangers, as there needs to be a huge amount of trust due to the ammount's of money involved. We treat are club like a mini business with seperate comities set up (research and finance) and sub divisions involved in all of these. Try ang get a group of freinds together to do it with, rather than a group of strangers.
We use IB for are online traiding, but its a little limited.

defiantshrimp

I remember seeing something about investment clubs on TV3 a while back with this women claiming she made amazing gains all thanks to courses from some Investment Club organisation. Then I checked out the price of the courses on the net and you would have to make amazing returns to break even. So I would be wary of clubs that use these courses. Why not just buy into a tracker fund with low costs? It is much cheaper when costs are accounted for and gives great diversification.

nesf

defiantshrimp wrote:

I remember seeing something about investment clubs on TV3 a while back with this women claiming she made amazing gains all thanks to courses from some Investment Club organisation. Then I checked out the price of the courses on the net and you would have to make amazing returns to break even. So I would be wary of clubs that use these courses. Why not just buy into a tracker fund with low costs? It is much cheaper when costs are accounted for and gives great diversification.

Agreed, after looking at the links, those sites will seriously eat into your investment capital.

You'd probably make more just by putting it into a managed fund, saving yourself the course content and the work.

And tbh, the course seems unnecessary. If you want to get your head around technical analysis then just pick up John J. Murphy's "Technical Analysis in the financial markets".

Far cheaper than taking some course that will at best teach you the basics.


And tbh, "charting" courses are best done after plenty of exposure to the markets.

defiantshrimp

nesf wrote:

And tbh, "charting" courses are best done after plenty of exposure to the markets.

I'd say charting courses are best not done at all, but thats another issue.....

nesf

defiantshrimp wrote:

I'd say charting courses are best not done at all, but thats another issue.....

*shrugs*

Matter of opinion really. If enough people do them....

There is some basis for cycles existing within the market. Whether they aid predicting the market is another story entirely. Although in the commodity, esp currency, markets they are of much more use than the stock markets themselves imho.

CYOF

Ian 21,

I looked at the TICN back in 2001, or around that time.

I was not at all impressed by their "Money TalKs" meeting. It was quite obvious, from what the speakers were saying, that they had no idea of how to trade the markets. They waffled on about TA, which, don't forget, is based on historical information and does not all guarantee that future prices will behave in the same manner as past prices. No mention of stops or money management techniques.They also waffled about "Milking the Cow", which was in relation to using Covered Call option writing to generate income from shares that one already holds - of course, they forgot to mention that by writing a Coverd Call you are limiting your upside potential (as the shares can be called away from you if the price of the stock rises) and at the same time your downside potential is unlimited, as the stock you are holding can go to zero worth. They never mentioned what the risk/reward ratio was, I wonder why?

Now, what are they really after. Firstly, you form a TICN club with 19 people, and who becomes the famous No. 20 member, well the TICN, who else. They get 1/20 (5%) of all the money you make, fair enough, after all, they are providing you with an EXPERT mentor who has just taken up a franchise for the local area.Sorry, I forgot to mention that they help you subscribe to a newsletter which gives you a list of what stocks to select from, the so called "4x4" companies(it just so happens that all this useless info is FREE on the inetrnet, if you look hard enough).Secondly, you can't form a club unless you go off and do a training course for around $1,200 (not sure about price, it could be more now).Thirdly, any tax issues are your own affairs, after all you are going to have to pay the taxman a lot of money after 10 years, as the club will be worth around 1 Million based on the monthly subscriptions and the projected returns.

I don't see anything wrong with trying to get people interested over the net, although it may be a lot harder to get them to put up money and actually join a club. It may be easier if you can find like minded people, but from the level of replies, I wouldn't expect too much.

You can of course, teach yourself to trade, and the added benefit here is that you don't have to listen to someone else trying to tell you that this next trade is a certain thing - famous last words.

CYOF