Monday, May 11, 2009

Market Lies and Fakeouts

I am still holding a stock called IGC where my average price is 51c and currently sitting at 22c.

I was given advice to buy this stock from a close mate, and it hasn't worked out very well for him either.

This excerpt from Alan Farley applies to the trade:

"Insiders deceive because deception works. Instructional books and the media tutor neophytes on the
financial world’s many rules and regulations. But they do a poor job communicating the shades of
truth that move modern markets. For every action there is an equal and opposite reaction. Insiders
have little motivation to carry price directly toward the current fair value. They grab better profits
along the way by taking two steps forward followed by one step back. Eventually they reach the
goal, but not before leaving a scarred landscape of short-term losers."