Wow, you have a very trusting group.

Kelly
----- Original Message -----
From: "Ed Stewart" <sir_quasar@bivio.com>
To: <club_cafe@bivio.com>
Sent: Thursday, January 22, 2004 8:56 AM
Subject: club_cafe: Startup issues


> Because of the nature of our business (offshore oil
> drilling), the inherent scheduling, and our scattered
> residences, the club which I am attempting to form will most
> certainly not be able to shape itself in the most typical of
> fashions. The biggest difference (among many) will be the
> fact that trading decisions will be made by myself on behalf
> of the group, and the group has agreed to give me
> compensation for this. I have read where this may be
> feasible as long as I only do this for a "small group". I'd
> like to get some feedback from this forum regarding legality
> and any other related issue.
>
> Thanks, Ed Stewart
>

Because of the nature of our business (offshore oil
drilling), the inherent scheduling, and our scattered
residences, the club which I am attempting to form will most
certainly not be able to shape itself in the most typical of
fashions. The biggest difference (among many) will be the
fact that trading decisions will be made by myself on behalf
of the group, and the group has agreed to give me
compensation for this. I have read where this may be
feasible as long as I only do this for a "small group". I'd
like to get some feedback from this forum regarding legality
and any other related issue.

Thanks, Ed Stewart

Ed...

You're opening yourself up to a number of potential problems:
1. Financial liability. You are making the investment decisions for
others. That opens the door for you to be liable to your "partners".
In addition, you are accepting compensation and therefore have greater
liability than you would otherwise have.

2. Potential for loss of friendships: Ad the decision maker, how will
your friends, partners and co-workers feel if your investments lose
money? You get all the responsibility and blame.

3. Legal liability. Refer to Ira's post. By accepting cash and by
making all decisions on behalf of your partners, you may be crossing the
line where state and federal licensing is required.

Why would you want to take this approach when internet can facilitate
communications and provide access to information? Your risks far
outweigh the rewards you may recieve from the pooled funds an investment
club generates.

John Munn
Cross Country Investment Club, an on-line partnership

Ed Stewart wrote:

>....the club which I am attempting to form will most
>certainly not be able to shape itself in the most typical of
>fashions... trading decisions will be made by myself on behalf
>and the group has agreed to give me
>compensation for this
>

Thanks Kelly, but when you spend 2 weeks out of every month
together on an isolated island in the middle of the Gulf of
Mexico, you develop a comradery that most land lubbers find
hard to comprehend. All in the group other than myself have
absolutely no trading experience, while I have traded both
stocks and futures. I knew it wouldn't be an easy task
setting things up this way, but thought I would give it a
look-see. All have brought up interesting issues, and I do
appreciate the input. The main focus is to teach what I know
to them, while being compensated for the trouble. I use a
self-developed system from years of market-watching and
participation, and while it's certainly not fool-proof,
gives me above-average return. Thanks to all again...

Ed Stewart

Kelly Roxburgh wrote:
> Wow, you have a very trusting group.
>
> Kelly
> ----- Original Message -----
> From: "Ed Stewart" <sir_quasar@bivio.com>
> To: <club_cafe@bivio.com>
> Sent: Thursday, January 22, 2004 8:56 AM
> Subject: club_cafe: Startup issues
>
>
> > Because of the nature of our business (offshore oil
> > drilling), the inherent scheduling, and our scattered
> > residences, the club which I am attempting to form will most
> > certainly not be able to shape itself in the most typical of
> > fashions. The biggest difference (among many) will be the
> > fact that trading decisions will be made by myself on behalf
> > of the group, and the group has agreed to give me
> > compensation for this. I have read where this may be
> > feasible as long as I only do this for a "small group". I'd
> > like to get some feedback from this forum regarding legality
> > and any other related issue.
> >
> > Thanks, Ed Stewart
> >