NationStates Jolt Archive

How are you going to learn?

Tomorrow I am starting a new investment club. We have about 10 members. We have two beginning goals. The first is to learn how to buy every kind of investment online. The second is to learn the stock fundamentals analysis.

Is anybody in an investment club? Does anybody have any advice for us?

Tomorrow I am starting a new investment club. We have about 10 members. We have two beginning goals. The first is to learn how to buy every kind of investment online. The second is to learn the stock fundamentals analysis.

Is anybody in an investment club? Does anybody have any advice for us?

Hmmm, I'm not in an investment club and tbh I don't know a lot about investing, but if I were you I wouldn't learn to invest using real money.

make sure everything is spelled out written down signed off on........people get bitchy when money is involved.

also, figure out how often to meet and have people who know what they are doing come and talk to your group often.

How are you going to learn?

Well we are going to learn how to buy investments online by assigning two or more members to figure out how to purchase a particular investment by next month's meeting. We will walk through or actually purchase the investment online at the next meeting.

Fundamentals analysis is going to be a bit trickier I think. We will have more expericenced guests but we do have a major university endowment manager on the team who might be able to help there. We will also have reasearch assignments and presentations in this area as well. Although the less experienced will only be initially assigned general investment themes to research like diversity and dollar cost averaging.

make sure everything is spelled out written down signed off on........people get bitchy when money is involved.

also, figure out how often to meet and have people who know what they are doing come and talk to your group often.

We will have things in writing. I am a lawyer and I prepared the partnership agreement to be passed out at the first meeting and discussed and executed at the second. First thing we have to do is agree on a name. I put a dboring default one in the parternship agreement but I hope some members will suggest witty names.

Hmmm, I'm not in an investment club and tbh I don't know a lot about investing, but if I were you I wouldn't learn to invest using real money.

Well we are going to use actual money (otherwise we probably would not take it seriously). However, we will not be using a lot of money. We will start out with $200 each for the January contribution. Then we will require $50 a month thereafter. This is a lot of money in an objective sense but it is probably not going to cripple anybody financially. A few of the members are pretty wealthy (the youngest member is a factory laborer who works overtime and does not spend his money on anything and he probably has more savings than some lawyers and professors who are decades older).

Diversify. Never buy too much of one thing. So if you buy shares, also buy bonds. Once you really know what you're doing, you can also use options to try and manage the risk (the idea being that the options kick in if your other asset makes a loss).

But if any of these things sound a bit new to you, rule number one should be to only put a little bit of money in and leave it at that. There's a shitload of stuff to do, and a lot of it isn't necessarily a good idea. So keep it simple and make sure that in a worst case scenario the losses don't seriously hurt any of you.

And look whether either you want to do some finance intro course as an elective at uni, or you attend some other seminar that will show you the basics of portfolio theory.

The first is to learn how to buy every kind of investment online. Well, I can do it via my online bank account.

The second is to learn the stock fundamentals analysis.Considering monkeys throwing darts randomly at a page of stock notation regularly out perform professional traders; I'd say forgo analysis.
Although admittedly it depend a bit on the markets.

Does anybody have any advice for us?Don't invest more than you can stand to lose, and go for the long term.
Buy low, sell high; so considering the markets crashed a few days ago, that would have been a good day to buy (well, the end of the day, not while it was crashing, obviously).

Considering monkeys throwing darts randomly at a page of stock notation regularly out perform professional traders; I'd say forgo analysis.
Although admittedly it depend a bit on the markets.


Got a source4dis?

Clubbing? I love clubbing!

Especially baby seals.

Badush BING!

Got a source4dis?
It's a funny way of saying that in all likelihood you're not going to outperform the market consistently.