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QUESTIONS and ANSWERS
When and where does the
club have meetings?
Meetings
are held monthly. All meetings are held on line. Meetings are called
when there is business that necessitates conferring with the
membership. Members may request that a meeting be called. The Board of
Directors is subject to call by any member of the Board, with notice
sent by email.
Who's ideas was this?
No one person can claim the credit or have the blame foisted upon them.
This is the result of discussions over the years. Some of us have
studied the Market or worked in the market. We have found it facinating
and mystefying, certainly risky and rewarding.
Why did you want to do this?
We believe that we can gain substantially by sharing ideas,
participating in projects with others where we can learn. This gives us
the opportunity to meet and work with others and develop friendships.
The value of networking with others cannot be over valued, we feel. We
do not have a lot of money and it takes money to become involved in
some of the more profitable enterprises. Banding together in a club
will expand our opportunities.
Who
can be a member?
Anyone 18 years of age or older may
join. There are no restrictions related to Age, Gender, Race, Religion,
Sexual Orientation or Political Persuasion.
What is the liability?
There is no personal liability. The Club is a not-for-profit
corporation no stock Corporation and is a person in its own sense. The
vehicle was chosen to allow for protection for participants while
having the confidentiality of a corporation with the attendant
protection.
Who are the officers and directors?
The officers and directors are the incorporaters, the Manager and
Secretary; Five in all serving 5 year terms, removable by the Board.
The five seats are numbered and that person holding a number will have
an initial term than coincides with the value of the number to
guarantee continuity and a full board at all times.
Who can vote?
There is no voting. The consensus rules. Members are free to leave at
any time and are not bound by any rules or restrictions except those
the individual member accepts. There is no compulsion to join any
program. Apart from the one time membership fee, there is no compulsion
to participate. The Board of Directors has the task of overseeing the
operation. The Bylaws have a rather detailed operation set of
guidelines. Anyone who wants to be a Director, may nominate himself or
herself or nominate someone.
What is the
membership fee?
One may become a member only one way. The life-time membership
fee is $75.
Why is the quoted fee of $175.
That amount includes the optional $100 (lab) fee wherein that
amount goes into the trading account operated by the club. That $100
goes into a program that is absolutely optional. Optional but very
important to take full advantage of all the Club's benefits.
Can anyone be a member without participating in the
investment programs?
Absolutely. Anyone who wishes to take advantage of the Club may pay the
membership fee and join in with the investment program when he or she
wishes, or never.
In the fee refundable?
The membership setup fee in non-refundable. One can withdraw capital
and earnings from the Lab fee any time that the trading account has a
positive balance.
Whose
name is the account in?
The trading account is in the name of the Club, Capital Growth Study
Club, Inc.
Why can I not have an account in my name?
You can. The club presents an opportunity to avoid all the
paperwork and the heavey up front investment. An account of the nature
worked by the Club must be vested with a minimum of $20,000 to $50,000,
depending upon the Broker/Platform selected. Then there is the
matter of a trader. If you feel comfortable and knowledgeable
sufficiently to trade, the by all means, do that. The club has
agreements with traders with proven ability, professionalism and
honesty. These are willing to work with our funds in conjunction with
their own unds. It works for us; it works for them.
Who
trades the account?
The account is traded by experienced
traders selected by the Management. Anyone who wants to trade an
account must make a proposal and it will be discussed at the time of
the following meeting. With a minimum of $25,000 you can have your
funds traded separate from the Club's funds. The rules and costs
are substantially the same.
How much does the Club
make?
Individual lab
participants get 70% of the profits on trades. The Club takes 5% of the
earnings; 20% goes to the trader; 5% goes to defray the cost of
membership development (to member sponsors). The traders receive
their fee only our of earnings, with nothing carried forward. The
accounts are closed after each trading session. If there is an open
position that the trader does not want to close, it will continue in
place until closed or settled. The trade(s) remaining open will be
flagged as will be those members with accounts involved in the trades
and distribution of any earnings on the held over trades will be
settled as soon as practical after the close.
When
are earnings on the Lab account paid?
Dispersals are made on the last day
of the month. Trading stops on the 26th of each month. Money is traded during the coming
calendar month.
Can earnings
be allowed to ride?
No. Dispersing the earnings is compulsory. If a member wants
to add money to the lab fee, he or she may do so. Added funds must be
in the account on or before the 26th of each
month to catch the next period of trading.
What
is the thing about sponsors?
It is a means by which members can add funds to their
lab account. If a member recruits a member, the sponsor's account is
automatically credited with $50 and he receives 5% of the earnings of
the sponsored members' lab earnings. Sponsorship fees are added to the
sponsor's Lab account as capital unless a request is on file by the 26th of the
month to disgorge it.
Does
the club pay taxes?
The club has a Federal Tax number and
reports on money it earns and retains. Members will receive a 1099
reporting all the earnings from all sources. It is the responsibility
of each member to attend his own tax obligation.
What
if there is a trading loss?
Each person is responsible for loses up to
the amount allocated to the lab account. There is no general liability.
Risk to capital in each trade is limited to 10 to 20% of the capital.
Why is it mandatory to
have a debit card account at AlertPay?
The AlertPay account is
not mandatory. We recommend that Members have a Bank Of America FREE
check card account (Debit Card). Fees and Lab Funds can be deposited
directly into the Club's account at Bank of America, on line if the
member has a Bank of America Account and by wire transfer.
International members may wire fund to the Club Account. The AlertPay
FREE account allows management to disperse to the individual account
directly into members' account. Otherwise, the Club could not properly
and efficiently make the numerous distributions each month. It is not
necessary to have the AlertPay account if the member has a Bank of
America Account. The club can distribute on line with minimal effort an
at no cost to anyone. It would be too cumbersome and costly to write
checks. The way selected puts funds at the disposal of member almost
immediately. Also, the process for adding to lab account is more simple
and fast because the Club has an account. Transfers inside AlertPay can
be made almost immediately. Soon after you become a member, we will
request informtion from you that we must have to send funds.
Where can I get other answers?
If you have further
questions, Send
an Email. It will be answered as quickly as possible. We are
pleased to have your questions and will post questions and answers that
have a general appeal.
How much does
the lab account earn?
There are funds working now. Reports on trading results are
posted at the close of the trading period of up to 20 days each month.
A typical trading report was: 14 trading days shows gross earnings of
24.83% on the funds traded. Regularly the reports show 1 to 8% (at
times more, especially when leverage is utilized) profits per trading
day. The traders try to get in 20 trading days a month.
PLEASE
NOTE:
It should go without saying, but it is important that members
understand and remember that "past performance is not an indicator
of future performance" in all trading; or for
that matter, any business activity. READ THE
DISCLAIMER SECTION
How can that be
done?
That is what we are studying. One major
factor is the judicious use of leverage. Another is the use of the
Stop-Loss order. Traders have their own 'system' and trade in their
uniquely peculiar way. It requires, experience, patience and
concentration to be a good trader.
When
can capital funds be taken down?
PLEASE NOTE: Funds in the account on
or before the 26th of the month are
traded on or after the 1st of the following
month. Earnings are distributed to Debit Card accounts on the first of
the month. Capital withdrawal may take as much as 90 days. Funds will
be held in Treasury Bills and must be liquidated. Anticipate your needs
and notice at least 90 days in advance. In all probability it will not
take that much time. Liquidation of T-Bill can be done any time but
will incur some fee.
Leverage is used and that requires assurance of the trader's ability to
meet financial obligations. Rather than risk or use cash, T-Bills will
be used to assure the transaction. Every effort must be made to avoid
sale under pressure. Treasury bills, or T-bills, are sold in terms
ranging from a few days to 52 weeks. Bills are typically sold at a
discount from the par amount (also called face value). For instance,
you might pay $990 for a $1,000 bill. When the bill matures, you would
be paid $1,000. The difference between the purchase price and face
value is interest. It is possible for a bill auction to result in a
price equal to par, which means that Treasury will issue and redeem the
securities at par value.
Can a member trade larger sums?
Yes. We can take sums up to $200,000, in which case an account would be
set up for the member and a trader contracted. We insist that the
trader is working his own funds; we want him to have plenty of
incentive to work properly and with enthusiasm.
Finding our way on
unmarked trails, in uncharted waters, in deep forests...
in the darkness of purposeful obtuseness...
We
are learning to invest where risks are minimal or manageable. The
Market is volatile and uncertain as has been seen in recent days of a
horrible downside. Yet, there is money to be made. We want to know how
to invest in these Times.
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