First of all, what is an investment club? It can be simply defined as a group of people who share a common interest in investing in the stock market, and pool their resources to make a large investment in the stock market.



So are you the ONE to start an investment club?

Answer these questions:

1) Are you looking to make fast money?

If your answer is yes, this is not for you. You should consider investing on your own. That will have higher risks of course.

A main feature of the investment group is to start to learn how to invest your money and to invest for a long term rather than a short one.

2) Are you an expert on the stock market?

Take the investment club as an oppurtunity to learn the ins and outs of investing, as a group, and slowly. So be prepared to be an amateur, to learn from the group, and offer your wisdom and share your knowledge. If you stand out as being the odd one out with plenty of experience (and pre-conceived notions about the stock market), you may not do well in this setting.

3) Do you want to make a killing in the stock market?

Again, be realistic. You will be learning along with the group, makeing mistakes along the way, and enjoying successes as well. If you have dreams of striking it rich, you will be starting the club for the wrong reasons.

4) Do you have lots of money to invest?

You don't need a lot of money to start an investment club or to pay the dues and monthly contributions. When you combine your investment dollars with the dollars of others in the club you'll have a significant amount of money to invest in the stocks that you've been watching and think may be successful.

5) Do you always make decisions on your own or unilaterally?

One thing that you should keep in mind is that your voice will be part of the larger group and you may not always have a say in which stocks you want to invest in. If you're unable to sit back and let another decision take the place of something that you would rather see, then an investment club might not be for you.

After going through the questions above, you will have a better understanding of your suitability to start an investment club. If you answered NO to all the questions above, then you may be the ideal person to start your very own stock investment club, so go for it!