The Money Tree

Safely Generating Income in Retirement

Archive for January 1st, 2010

2009 – A Year in Review

Posted by mounddweller on January 1, 2010

UPDATE:  Note, I have updated this post from its original contents to correct errors I found in my results spreadsheet.  My apologies for any inconvenience or confusion this may have caused.

Well my first full year of CC/NP trading following Ron Groenke’s approach and using his VISIONS software is complete.  What a year it has been!  First we suffered through one of the most volatile periods in history and the accompanying drop in the stock market.  Then we experienced the most explosive recovery in the history of the market.

How did I do?  Well before we delve into those details let me say that I was very conservative in my trading this year.  I only did trades where I felt the odds were overwhelmingly in my favor.  This is evident in my results as I did not have a single losing trade using Ron’s approach.  My conservatism is readily apparent in the metrics presented below.

I only entered and closed 15 trades using Ron’s methodology.  However, all 15 of these trades were profitable.  Another indication of my conservatism can be found in the size of my trades and the average profit generated from them, $7492.71 and $311.32 respectively.  Yet another indication of my conservatism can be found in the fact that 12 of my 15 closed trades were cash secured naked puts that were for the most part deep OTM.

Clearly, if I want to achieve my long-term investing goals I will need to greatly increase the number and size of my trades.  However, going forward I don’t think this will be an issue because my results this year have given me even more confidence in Ron’s approach and the power of his VISIONS software.

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