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Intro to stocks

How Do I Start A Club?

Since we've done such a great job convincing you of the merits of joining an Investment Club, you're now itching to run out and form your club, or maybe you're just curious on how they run. Below, we outline a number of simple steps that will help you on your quest.

Find a Group

This step tends to be quite important. Without it, you usually end up alone, in a large room, talking to empty chairs. So, to avoid this unfortunate set of circumstances, round up your friends, neighbors, fellow co-workers, or even family members. A group of 8 - 15 members is usually recommended, however, clubs both smaller and larger in number have also been highly successful in the past. Try to find a mix that can get along reasonably well. Remember, you will have to interact with your club members at least once a month.

Establish Goals

Once you have gathered together your team of "investment superstars", you should establish a clear set of realistic goals. This can be done at the club's first formal meeting. Often, two or three primary goals are submitted by each member, with the most popular going to a democratic vote to determine the order of priority. Two important goals adopted by most clubs, which we alluded to earlier are: to learn about investing and to earn a solid return on their investments. The primary goals are then set and group members should understand these stated goals. Remind all members that the club is designed to be a long-term commitment, so the decision should not be taken lightly.

Formal Structure

The structure is usually quite simple and can be modified in several ways to meet your specific needs. Most clubs of 8 - 15 people are usually set up as a legal partnership for taxation purposes. During your first meeting, you will probably want to perform the following:

Investment Clubs:

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