Investing Online And BPI Trade

INVEST ONLINE WITH JUST ONE CLICK, says the BPI Trade flier that Marginal Stock Trader took on his way out of the BPI Securities Corporation office last week when he went there on official business at BPI Head Office, Ayala Avenue corner Paseo de Roxas, Makati City, Philippines.

BPI Tade Flier
Marginal Stock Trader decided to share in this post the contents of the said BPI Trade flier:

Get Efficient, Convenient Access to your Investments with BPI Trade!

A unique and advanced online investment facility, BPI Trade gives you online connection to invest in Common Stocks, Fixed Income Securities and Mutual Funds right from your Internet-connected PC. So go ahead, buy that stock or make that placement. . .at your convenience.

Simply log on to www.bpitrade.com and make your investment orders. With BPI Trade, everything you'll need is with us. . .online!

Get the best investments with great benefits to match:
BPI Trade empowers you to choose from a variety of investment products to fit your needs. It also gives you the investment information you need and keeps you updated anytime, anywhere!

Common Stocks

• The lowest Commission Rate of 0.25% allowed by the PSE
• Get updated with Real-time Market Information direct from the PSE
• Real-time Order Status via Email/SMS
• Off-Hours Order Taking
• Online Confirmation Advise next day
• Online Statement of Account on the 1st day of the following month
• Email/SMS confirmation on matched deals, high/low share prices and closing prices
  

Fixed Income Securities

• Trade T-Bills, Fixed Rate Treasury Notes, and Retail Treasury Bonds
• Shortest tenors available
• Always quoted at competitive rates even for the lowest minimum investment
• Off-Hours Order Entry
• Online Confirmation Advise
• Email/SMS Alerts on Maturities and Transaction Status
  

Mutual Funds

• Invest in ALFM Peso Bond Fund
• Historically higher yields compared to traditional bank products
• Php100,000 minimum investment
• participation fees (sales load) WAIVED
• Online Contributions and Redemptions
• Email/SMS Alerts on Transaction Status
  

A secure website for your peace of mind!
BPI Trade has a "firewall" that protects you from unauthorized access. With your unique User I.D. and Password, only you can access your BPI Trade account. BPI Trade will run only with browsers that support a 128-bit high level Secure Socket Layer (SSL) protection. These browsers can communicate securely via encryption, which changes the order of data you send and receive through the Internet channel. With these, you can have peace of mind knowing that all your trades are safe and secure.

With BPI Trade, managing your portfolio is made easy!
BPI Trade gives you the flexibility to shift your investments between fixed income securities, mutual funds and stock market securities.

Enroll in BPI Trade now, log on to
www.bpitrade.com
and click "Apply Now"

For more information, log on to www.bpitrade.com or
e-mail BPI Trade at bpitrade@bpi.com.ph

Performance for July 2009

ONLINE STOCK TRADING transactions for the month of July 2009 resulted to a 2% decrease in Marginal Stock Trader's BPI Trade trading account beginning equity of 10,000 pesos as of this month's last trading day.

Based on his Weekly Total Equity Tracker, Marginal Stock Trader's portfolio on July 31, 2009 is valued at 9,816 pesos. Of this amount, 30% is allocated for his anchor stock or stock position maintaining balance, and the other 70% is held in cash.

Marginal Stock Trader has also updated his own resistance and support levels based on Minor Top and Minor Bottom. As of July 31, 2009, we placed our Minor Top at 317.50 pesos and Minor Bottom at 285 pesos.

OnlineTrading Monthly Results

HIS ONLINE STOCK TRADING PLAN, STRATEGIES AND IDEAS already tested and updated after a period of almost 12 weeks in a live trading environment, Marginal Stock Trader finally decided to close all his outstanding positions this month in preparation for a fresh start by August 2009 and this time with little bits of trading lessons learned here and there.

Start low
We said in one of our early post Make a Living As a Day Trader that we would start with just one trade per week and a very low weekly profit goal of 30 pesos. We managed to make 6 trades out of 12 weeks and even made a weekly profit of 29 pesos as of May 2009 on the average.

Delayed reaction
Beginning June 2009, we started to learn something about technical analysis, Japanese candlesticks, long position and short position, and Minor Top and Minor Bottom. We made decisions based on our understanding of technical indicators. We also tested the limits of our stop loss strategy based on the Minor Bottom of 270 pesos for Ayala Corporation stock at that time.

This month's result was a disaster. We got our first lesson in losing money through our biggest single loss so far of 370 pesos equal to about 4% of our trading equity. We looked away from our original stop loss rule and ended up selling at the bottom price of 265 pesos.

Add to this is our misreading of the trend that triggered a decision to go long on Ayala Corporation at 312.50 pesos, which turned out to be the top for an entry price.

Loss-limit system
By the 9th week since we entered our first order in live trading at the Philippine Stock Exchange through our online broker BPI Trade, Marginal Stock Trader added an important element in our stock trading plan that allows us to better put a cap on our losses: a loss-limit system.

This system placed our single trade loss limit at 2% and our maximum monthly losses at 6% based on our equity in our trading account. Our Weekly Total Equity Tracker shows that as of July 24, 2009, our month-to-date losses was cut by more than half to about 3% compared to 7% a week before.

Stock portfolio
For the period May 11, 2009 to July 27, 2009, our stock portfolio consisted of just one issue, Ayala Corporation, our online broker is BPITrade, and we only trade common stocks at the Philippine Stock Exchange.