Investment Club

[docscience]

I was thinking about a stock investment club for SDN.

I know it is a stretch, but what about collectively putting money into a trading account, and investing in the down trodden market. If everyone puts in a $100 a semester, we could have a lot of buying power and buy some index coverage and perhaps some riskier plays.

Anyone interested? (this may be better in the investment forum, but thought I would start here...thanks)

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[Law2Doc]

I was thinking about a stock investment club for SDN.

I know it is a stretch, but what about collectively putting money into a trading account, and investing in the down trodden market. If everyone puts in a $100 a semester, we could have a lot of buying power and buy some index coverage and perhaps some riskier plays.

Anyone interested? (this may be better in the investment forum, but thought I would start here...thanks)

The anonymity of the internet makes this a really bad idea. Like who is going to send $100 to some stranger in another state who they have never met, who maybe a troll (not saying you are, just in general), may be looking to finance gambling or drug habits, etc. this is the kind of idea that is really best suited for folks to do in a group of friends they actually know. The opportunity for scams is simply too great for something like this to ever be done via strangers in an internet community.

 

[docscience]

law2doc,

I am a new fan...you have great insights.
Mind if I ask what year/stage of life you are in?

That is true about the access of money over an anonymous internet site. However, if the account could be set that only a few "administrators" can trade, and only money could be taken out if all/majority of the members approve, then it bypasses the insecurity of not being able to control your money.

But, I do really see the logistical problem in this. Good point.

 

[Blade28]

The anonymity of the internet makes this a really bad idea. Like who is going to send $100 to some stranger in another state who they have never met, who maybe a troll (not saying you are, just in general), may be looking to finance gambling or drug habits, etc. this is the kind of idea that is really best suited for folks to do in a group of friends they actually know.

Agreed.

Investment clubs tend to be between classmates, friends or family members. NOT strangers on the Internet.

 

[DickyV]

They have those. They're called mutual funds.

 

[thegold91]

Due to the anonymity of the internet, all funds should be sent to one persons account using western union money orders.

 

[njbmd]

Moved to Investments

 

[Quadratic]

They have those. They're called mutual funds.

Bingo. But I think he wants to specifically target certain stocks and other assets in this suggested pool of investors. Which begs the question, who would oversee the fund? Trading in today's market is very volatile and requires minute to minute access. Who will do that? What are their credentials? Would you have to hire someone? How much would they want to get paid (this would be a relatively small group, after all. Not much incentive to give discount).

Like law2doc said, this probably isn't a good idea.

 

[The White Coat Investor]

While it may not be a good idea to do this with REAL money, it might be interesting to do it with fake money. We could start with a theoretical pool of $100K, plan to divide it into 5 for 5 individual stocks, and after a certain debate period, we could vote on which stocks to buy. We could simulate brokerage and tax fees and track our return. Whenever someone wants to readdress our picks, or if they have another pick they feel may be better, we could reopen a 10 day discussion period about it.

If someone wanted to follow these picks with a real money account, they could do so without any of the downsides noted above.

 

[zinjanthropus]

While it may not be a good idea to do this with REAL money, it might be interesting to do it with fake money. We could start with a theoretical pool of $100K, plan to divide it into 5 for 5 individual stocks, and after a certain debate period, we could vote on which stocks to buy. We could simulate brokerage and tax fees and track our return. Whenever someone wants to readdress our picks, or if they have another pick they feel may be better, we could reopen a 10 day discussion period about it.

If someone wanted to follow these picks with a real money account, they could do so without any of the downsides noted above.

that actually sounds more fun than my fantasy basketball team was this year....yep, seriously

 

[Quadratic]

While it may not be a good idea to do this with REAL money, it might be interesting to do it with fake money. We could start with a theoretical pool of $100K, plan to divide it into 5 for 5 individual stocks, and after a certain debate period, we could vote on which stocks to buy. We could simulate brokerage and tax fees and track our return. Whenever someone wants to readdress our picks, or if they have another pick they feel may be better, we could reopen a 10 day discussion period about it.

If someone wanted to follow these picks with a real money account, they could do so without any of the downsides noted above.

Now that sounds interesting. Adding commodities, ETFs and currencies would make it more exotic and entertaining though.

 

[The White Coat Investor]

Now that sounds interesting. Adding commodities, ETFs and currencies would make it more exotic and entertaining though.

We could allow ourselves to invest on 10,000% margin or bet it all on black too....

I didn't realize the goal was to entertain. I can find a lot more entertaining things to do.