Learning from our mistakes

Saturday, 5th September 2009 23:17 - by Boredmum

I’m sure everyone remembers my trading errors in Tower Resources (TIDM code: TRP). In all honesty, I was well in profit and got greedy waiting to come out when my initial investment had nearly doubled. I wanted a free ride and missed out because I was waiting for just a tiny bit more. Ascent Resources (TIDM code: AST): The company is not similar to Tower Resources, they have many more irons in the fire, so to speak. The similarity is that the trading for me was playing out very much the same. I bought AST at just over 8p (same as TRP), the share price fell and I’d averaged-down to around 4.25p (similar to TRP), the share price started to rise during drilling, but before results (same as TRP). Here, the similarities in my trading pattern end. I have removed my initial investment in AST, taking some profit (a nice little profit) and I still have a sizeable amount of ‘free’ shares running. I should have done the same things with TRP. I was too rigid waiting for TRP to double. I had come so close to it that I should have had some flexibility in my plan. The smart money may still be in AST - that is fine. We all have a different attitude to risk and I have learnt from my mistakes. That’s the thing...it is easier to risk ‘free’ shares on a drilling programme than it is with hard-earned cash. I hope I will have many more opportunities to get it right. It is good to learn from our mistakes.