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Author: Hohum777 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1761  
Subject: Re: Wrap up 2009 Date: 1/1/2010 2:31 PM
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However, the biggest lesson for 2009 is, ... Well, there's four trading days left, I should wait.

2009 is history, so now I can say it.

The biggest lesson for 2009 is that Dollar Cost Averaging (DCA) works, or at least, worked for some ideas.
- The Roth IRA had timely re-investments on several ideas.
AINV worked quite well. I sold on the way up so the effect is not as great, but about 47% of my current Roth AINV shares include unrealized bagger gains. GRRF, NM also have unrealized gains, with second or third purchases providing a lower price point. Selling on the way up reduces the impact, but I think there's some risk management there. Some ideas might take longer e.g. CHINA, GIGM, and some ideas completely implode e.g. GFG

- Trading account had instances where re-investments worked too. Although I took losses on the earlier shares, NM, SFL, KFN were net positive transactions. Although the gains have been smaller, OCNF had worked,...until it stopped working :(

- In the DRIP, I just needed to expand the time-horizon and ideas like AINV, FRO would have worked, or been in recovery. OTOH, FAX, TIE, VWO, SO, PGP have unrealized gains with DCA, and OSG, SFL have "stunted" gains

- The workplace 401k is the most consistent DCA example. I didn't adjust my allocations, so it had a really nice return for 2009. If I sum all contributions, and bring that total to the start of the year, the return is over 25%. So I know I did at least 25% in 2009 :) It certainly makes up for a lot of the 2008 horror.

I will end on that positive note. Since its actual, it has meaning. I will exclude the Mar 2009 "do nothing" scenario, although I know the rough return.


Happy 2010, and good luck to all in investing & trading in 2010
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