The honeymoon stage that I enjoyed as a member of the Truly Rich Club was two years long. Nothing went wrong. Everything was blissful.

I bought all of the recommended stocks when I had the funds. After purchasing, all I had to do was wait for the “sell alert” in my inbox.

The “sell alert” instruction is sent to all the members once the target price of a stock they recommended is reached.

All the “sell alerts” I received in the first two years were all instructions to sell at a profit. We sell and we take our profits off the table. The “new” money in our funds are then re-invested and used to buy recommended stocks which are still at their “buy below” prices.

My investments continuously grew. I enjoyed a steady winning streak.

Until the end of the third quarter of last year, 2012.

I received a “sell alert” in my inbox advising us to sell a stock at a loss.

That was a first time. And yes, I was not used to it.

However, I obeyed and immediately sold the stock they recommended to sell even at a loss.

They gave the reason why they advised it and I thought to myself they know better and besides my loss is quite small.

So, that was done. Move forward to a winning streak again.

I was WRONG.

After a week, I read in the newspaper that one of the Truly Rich Club’s recommended stocks which I also bought was excluded in the PSEi (Philippine Stock Exchange Index). I then predicted that I would again receive a “sell alert” in my inbox in a matter of time.

I hoped my prediction would not come true. But it did. I received another “sell alert” in my inbox. Another “sell alert” not because the target price of the stock was already reached but another stock to sell at a loss because the stock’s future was not bright anymore since it was excluded in the PSEi.

I did not sell immediately unlike the first time when we were advised to sell at a loss. Why? Because I was set to lose a bigger amount that second time! I was not prepared to bear the pain of losing that much.

Bo Sanchez, our mentor, knew that we will lose a bigger amount this second time but he advised us that it was better to sell immediately and cut our losses instead of wait for the price of the stock to improve which they predict won’t happen soon.

The honeymoon was over. Welcome, REALITY!

I let my emotions rule over me that time. I did not obey the instruction to sell. I held on to the stock and was firm (or so I thought) with my belief that the price will not go down so low that I would lose bigger than the already big amount I was set to lose if I sold the stock immediately.

I checked the price of the stock everyday. And as it happened, the price went down everyday together with my feelings.

I started to panic. My loss increased.

It was time to step back and look at the situation with reason as my teacher and not emotion. Realizing the wisdom behind the instruction, I finally obeyed and sold the stock two weeks after receiving the “sell alert.” True, I lost more money. But the amount was small compared to the lessons I learned from the experience.

Did you think I gave up my membership in the Truly Rich Club after those two unexpected losses?

No, I did not.

Reflecting on those two trying times that we, Truly Rich Club members, went through only made me appreciate the value of my membership in the club more.

It increased my confidence in Bo Sanchez as my mentor. The way he handled the difficult situation only magnified his character. It brought forth the fact that he possesses the qualities of a true leader. What he did was  put the best interests of the members over the risk of embarrassing himself when he gave the instructions to sell at a loss. An example of a humble leader, don’t you think?

He never promised that it was going to be smooth sailing. What he promised was he will hold my hands. And, hold my hands he did :).

At present, I already recouped the loss that I incurred. One of the stocks I bought with the money from the sale of the stock I sold at a loss grew more than what I lost. Bo Sanchez was right 🙂

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