Using Tip1 – Have Your Reserve Cash

(If you want a quick guide for beginners how to start investing in the Philippine stock market, you can download your free ebook here.)

In this blog I’ll share an actual example of the use of our first tip – the importance of having some reserve cash.
You can read about our TIP 1 here.
Last week, specifically Jan 23, I saw MPI going down by more than 3% in one single day.
It opened at 4.71 from its previous close of 4.91.
Now, that seemed quite an unusual correction for me.
So being aware of our first tip, I took advantage of the opportunity to buy it at that cheaper level.
Not really  much – only 4000 shares at 4.76. 
I used BPI Trade which is my online broker dedicated for those kind of opportunities. 
(Do you know that BPI Trade sends confirmation emails right after your order is matched?)
In effect, that consumed around 30% of my total reserve cash.
Why only 30%? So I can also be ready in case MPI gets lower.
Fortunately, the day after that, MPI bounced up. 
On Jan 24, it opened at 4.80.
Following the strict rule of our first tip, I immediately posted a sell order which eventually was matched. 
I was able to sell at 4.92 after it achieved its highest for the day which was 4.93.
Note that I didn’t care if MPI would still shoot up after I sold. 
At that moment, the important thing to do was to get back the reserve cash while getting some profits. 
That way, I could be again ready with future market opportunities.
So in that single day-transaction, I was able to have 3.36% less transaction fess.
Just a  few bucks actually, but hey, it’s still money, right?!
And that’s what our featured tip is all about!
Have fun investing (with your reserve cash)!

PS: Right now, if you’re following Truly Rich Club recommendations, only FPH and MBT remain below its Buy-below-price.
Whew, stocks are rocking on this first month of the year!

You can take a look at its current strategy – Strategic Averaging Method (SAM) here!

PS2: For beginners, download My Maid Invests in the Stock Market… And Why you Shoud too!

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