The market always knows

Saturday, 20th June 2009 20:52 - by Boredmum

I heard the statement ‘The market always knows’ several times last week. Well, in the case of Tower resources (TIDM code: TRP), the market certainly did. The share price started to drop two days before any official announcement to the drill results for their Iti-1 well in Uganda. Of course, this means that there had to have been a leak somewhere, but I don’t know if that was definitively the case. The share price was falling and we were all telling ourselves it may be okay. In fact, many of us were convincing ourselves it would be okay. ‘The market always knows’…‘The market rarely gets it wrong’…oh, how I shall not forget these statements if I find myself in that position again. I knew TRP was high risk. It was my largest investment and, in turn, my largest loss when I sold. Something was telling me on the Friday that there was something not right. If I ever have a niggling feeling again I will act on it. It is better to take a small hit than risk a large hit. If you get it wrong and miss a profit, well you’ve not lost money, only the potential profit. So, I’m a little more ‘risk-averse’ now. Another lesson learned to continue with in these markets. I know how all who invested in TRP must be feeling. Me, I picked myself up, dusted myself down and went straight back out there. I can tell you I didn’t feel like it, but for me it’s what I chose to do. If you’re feeling a little sad for me then you’ll like my next Blog.