BPITrade Fund Withdrawals

BPITRADE WITHDRAWAL PROCEDURE to get the money out of our trading account is easy. But for those new to BPITrade here is how to go about getting hold of your funds. By the way, this post is in response to a question we received from one of our readers:

Subject: Question lang po

From: Jun
Date: Wed, Jul 22, 2009 at 10:08 AM
Subject: Question lang po
To: Marginal Stock Trader


Sir Good morning po.

Pano po ba magwithdraw from BPI Trade? Di ba punta lang sa Services tapos Withdrawal, then indicate ung amount.
Automatic ba un mapunta sa account ko sa BPI Savings, un ginamit ko para magtransfer ng fund sa BPITrade using
Expressonline?

Matagal po ba bago matransfer?

Salamat.

Withdrawal Procedure
Correctly, our reader Jun had already answered in part his own question. Let me just add more details.

Step	Action
1	Sign-in to your BPITrade account
2	Go to Services
3	Click on the link Withdrawal Request
4	Fill up the amount to be withdrawn in figures and in words and click the Submit button.

The amount withdrawn will be available on your nominated beneficiary account (BPI savings or checking account with ATM card) the next day.

Weekly Total Equity Tracker

MARGINAL STOCK TRADER tracks his BPITrade trading account weekly equity balance through this post. For that purpose, we have adapted the system suggested by Jason Van Bergen in his Investopedia article Limiting Losses.

Week	Date	Cash Position	Stock Position	Total Equity		% Gain/(Loss)		Remarks
	17-Jul-09	10,000	-	10,000				beginning equity, this year
29	18-Jul-09	970	8,325	9,295		(7.1%)		stopped trading
30	24-Jul-09	6,816	2,900	9,716		(2.8%)		closed 2 of 3 positions
31	31-Jul-09	6,816	3,000	9,816		(1.8%)		ending equity, this month
32	07-Aug-09	9,567	-	9,567		(2.5%)		traded 30 shares, closed all positions
33	14-Aug-09	9,567	-	9,567		(2.5%)
34	20-Aug-09	9,567	-	9,567		(2.5%)
35	28-Aug-09	9,567	-	9,567		(2.5%)
	31-Aug-09	9,567	-	9,567		(2.5%)		ending equity, this month
36	04-Sep-09	9,567	-	9,567		-
37	11-Sep-09	9,567	-	9,567		-
38	18-Sep-09	9,567	-	9,567		-
39	25-Sep-09	9,567	-	9,567		-
	30-Sep-09	9,567	-	9,567		-		ending equity, this month
40	02-Oct-09	9,567	-	9,567		-
41	09-Oct-09	9,567	-	9,567		-
42	16-Oct-09	9,567	-	9,567		-
43	23-Oct-09	9,567	-	9,567		-
44	30-Oct-09	6,544	2,925	9,469		(1%)		bought 10 shares @ 300
	31-Oct-09	6,544	2,925	9,469		(1%)		ending equity, this month
45	06-Nov-09	6,544	2,950	9,494		0.3%
46	13-Nov-09	6,544	3,025	9,569		1.1%
47	20-Nov-09	6,544	3,025	9,569		1.1%
48	27-Nov-09	6,544	3,000	9,544		0.8%
	30-Nov-09	6,544	3,000	9,544		0.8%		ending equity, this month
49	04-Dec-09	9,481	-	9,481		(0.7%)		sold 10 shares @ 297.50
50	11-Dec-09	9,481	-	9,481		(0.7%)
51	18-Dec-09	9,481	-	9,481		(0.7%)
52	25-Dec-09	9,481	-	9,481		(0.7%)
	31-Dec-09	9,481	-	9,481		(0.7%)		ending equity, this month
	31-Dec-09	9,481	-	9,481		(5.2%)		ending equity, this year

Last updated: February 22, 2010
Marginal Stock Trader calculates his equity each week. This includes all of the cash in his BPITrade trading account, cash equivalents and the current market value of all open positions in the account. This weekly total is compared with the equity total on the last trading day of the previous month and, if we are approaching the 6% threshold, we prepare to cease trading.

In fact, when our 6% loss-limit level is breached, we may -- depending on our appraisal of the situation -- go even further and close all of our outstanding positions, and spend the rest of the month on the sidelines.

Employing a 6% monthly loss limit allows Marginal Stock Trader to hold three open positions with potential for 2% losses each, or six open positions with a potential for 1% losses each and so forth. For more, read our previous post Loss-Limit System for Traders.

Loss-Limit System for Traders

MARGINAL STOCK TRADER is not a stranger to losing money in online stock trading at the Philippine Stock Exchange trading his favorite stock Ayala Corporation. Of course, losing money in the stock market is inevitable for stock traders. And losing our hard-earned money is not an easy experience, which can be emotional at some point. Therefore, organizing a loss-limit system is critically important specially for small capital online stock traders.

Single trade loss limit
For our single trade loss limit, "a common level of acceptable loss for one's trading account is 2% of equity in the trading account" says Jason Van Bergen in his Investopedia article Limiting Losses. The capital in our trading account is our risk capital, the capital that we employ (that we risk) on a day-to-day basis to try to garner profits for our online stock trading business.

Monthly loss limit
"A general rule for overall monthly losses is a maximum of 6%" of our portfolio added Van Bergen. As soon as our account equity dips to 6% below that which it registered on the last day of the previous month, we stop trading.

Trading account
Marginal Stock Trader has a total of 10,000 pesos as of July 17, 2009 in his BPITrade trading account. This means when establishing our position, we should also establish a stop loss rule within a maximum of 2% loss of the total equity in our account. Our stop, however, may be anywhere from a 0-2% total loss. Thus, we set our 2% single trade loss limit at 200 pesos. Consequently, our 6% monthly loss limit is placed at 600 pesos.

Application of loss-limit system
Let us consider our trading portfolio of 20 shares of Ayala Corporation stock purchased at an average cost of 286 pesos or a total cost of 5,723 pesos. A loss of 200 pesos is equal to a net sales proceeds of 5,644 pesos. This is also equal to an exit price of 280 pesos pesos per share if all of our outstanding positions were to be closed all at once and the orders were to be placed with BPITrade. If done in two transactions, then our stop loss exit prices are placed at 265 pesos and 277.50 pesos.

Transaction Date	No. of Shares	Entry Price		Total Cost		Stop Loss Price
29-Jun-09	10	290		2,925.32		277.5
16-Jul-09	10	277.50		2,798.04		265
TOTAL	20			5,723.36		280

This arrangement fits well with our Marginal Stock Trader Updated Stock Trading Plan (For more, read Online Stock Trading Plan Updated).