Once bitten, twice shy

Monday, 1st March 2010 20:51 - by Boredmum

Once bitten, twice shy...well, in the case of Tower Resources (TIDM code: TRP) it was very much a case of yes and no. Tower Resources, as many of you may remember, was my largest loss. I stated when asked that I wouldn’t go into it again. I felt that I had been stung so badly that I just couldn’t go back there. I have previously mentioned my little day-trade last month on Deo Petroleum (TIDM code: DEO). It was quite successful and I had made a quick profit of £415. I put those profits into Tower Resources; it was just a little fun, 10,000 shares for just under 4p. You see, for me it couldn’t have been anything more than fun, as I couldn’t and wouldn’t risk more funds. I was quite happy that it was free money, the upside perhaps being £800 to £1200 coming back out, and the downside was a loss of £200. That was about as much as I was happy to risk. Tower Resources has been called the gambling man’s share and now I know why. I was actually surprised to see the RNS, I had no idea that they would have been at target depth already. To be fair, I wasn’t following it closely. It stated ‘no oil shows’. My first reaction was ‘Oh, no’ - not for me, but for the many other private investors. I know first time around I really believed they would have been successful and I really felt for everyone. I read the chat forum for a bit, but had to stop reading as I was genuinely upset for holders. Tales of tens of thousands of pounds lost. Someone said ‘Did you think they were more likely to have success after their first failure?’ Well, of course that doesn’t make sense, but strangely enough I did. I know a lot of people are hurting. One thing I can say is that the thousands I lost first time round on Tower were made up in 2 days. I know that was luck or fate, but it’s worth bearing in mind that success in these markets can come in an instant and I sincerely hope that anyone that lost in Tower has a chance of making up their losses elsewhere.