No. of Recommendations: 3
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
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.