If you sincerely want to learn about the stock market-how it operates, how you join and how you profit-and other sort of investments, then you might want to set up your own private investment club (PIC). This “club” is often made up of a small band of people who joined together to delve into investment plans and make small profits with their investments together.
Club Organization. PICs are often made of not more than 15 people who seriously want to learn about investments together. To keep the club alive, members have to pay regular obligations either monthly or quarterly. As there are not a lot of members, each member is expected to contribute or participate in every activity of the club.
Investments. Whatever investments your private investment group decides to take in, it should be decided by the whole group. Do not expect financial yield in the first few years of the investment. Just like any investment tools, each member should be prepared to invest long term. It may not help your club if there will be members who seek immediate financial return on their investment or simply wants to cash out of the investment club the soonest time possible. With PICs, patience is always a virtue.
Goals. Most private investment clubs only have two goals: to lean the dynamics of investing, and how to eventually profit from these investments.
Learning the dynamics of investing can be learned through the process of fulfilling tasks that is assigned to each member like researching or tracking the movement of specific stocks that your PIC has tried to invest in, or might be considering as an investment. All information should be shared with the rest of the group during meetings, including all the process involved on how the information was acquired. It is only through this that all the members of the group will benefit from the effort of each member and, in turn, everyone will learn altogether without having one being overtaken by the other.
On the other hand, the second objective is achieved through time. Your private investment group should have improved their investment skills and should be able to choose stocks that have great financial yield. Again, it is not wise to expect immediate financial gain unless your group is savvy and lucky enough to discover the next Yahoo.