The Money Tree

Safely Generating Income in Retirement

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.

7 Responses to “2009 – A Year in Review”

  1. Rich said

    Troy, looks like you had a pretty good year. I was happy with my overall results also. Following are YTD gains as of Dec 2009:

    Wife’s IRA overall 27.4% gain ( 62.7% from options and 37.3% from dividends )
    My IRA overall 17%
    Joint margin account 32.3% return

    My goal for 2010 is to be a little more conservative and keep a good percentage of capitol in cash.

    Rich

  2. mounddweller said

    Rich,

    Those are excellent results. Best of luck in 2010. Keep posting those trades. I’m always interested in hearing what others are doing and what they’re thinking.

    Regards,
    Troy

  3. Len Petry said

    Does anyone have experience with Ron Groenke’s new software?

    • mounddweller said

      Len, I have not used Ron’s VISIONS software for several years. You might consider joining
      moneytreevisions-subscribe@yahoogroups.com this group on Yahoo. It isn’t very active but all of the members are users of the software. The board is managed by Tommy Brown.

      • Len Petry said

        Thanks for the suggestion.

        Since you apparently tried and subsequently abandoned Visions, that it wasn’t the holy grail for you? Any particular reason?

  4. mounddweller said

    Len, I stopped using Visions simply because it seemed to find more trades on small and mid-cap stocks. As I’m sure you’re aware large-cap stocks tend to be less volatile. Thus, they don’t show up on the Visions scans nearly as often. I wanted to shift the focus of my trading to dividend paying, blue-chip, large caps. Since these didn’t appear very often in Visions I decided to end my subscription.

    I still think Visions is an amazing piece of software and I have a huge amount of respect for Ron who built Visions and for Tommy who markets it and trains people on it.

    Best Regards,
    Troy

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