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URL:  https://boards.fool.com/dd-elation-greed-fear-panic-sanity-12260888.aspx

Subject:  DD, Elation, Greed, Fear, Panic, Sanity Date:  3/23/2000  12:24 AM
Author:  mishedlo Number:  1703 of 8809

About DD, early Elation, Greed, Fear, near Panic, and finally some sanity and hopefully some sleep.

I invested heavily in Rambus just before it took off. This was not a pure GG strategy and I knew it.

I looked at it from a risk reward scenario. Extremely high potential coupled with my belief that I could get out in time if it went wrong.

When the stock took of there was elation. Wow if this baby gorilla does what I expect over the next few years I can retire. This was followed by greed. 44% of my portfolio was in RMBS before it took off, at its peak it was over 80%. That's a lot riding on a single stock. It did not occur to me to place a protective put. A very, very hard hard lessoned followed. The stock tanked 3 days in a row under a severe, cooridinated, and well financed short sell attack.

A 1 month 4 bagger eroded into a 2 bagger in days.
Why didn't I sell some on the way up, why didn't I sell some on the way down? All I wanted at the end of the year was $350 anyway. $470 was there for the taking. RMBS hit an intra-day low of $240 on the way down.

Panic hit. Do I sell, do I wait. Might my 2 bagger become a one-bagger. I held. Fortunately, good news came the next morning. Solid analyst support and a target of $500. Stock jumps $75 on the open and trades at $340 for a period of time.

Sanity sets in.

I sell my entire IRA portion of RMBS which was 2/3 of my holding. Do not even have to pay the taxman. If RMBS dips, I may buy back in some shares later. Still have my 1/3 share in my regular account, now protected by a probably uneeded protective put. I will take the peace of mind. Had no sleep for days and over the weekend. Oddly enough, if the 1/3 shares hit my price target I still have more than enough to retire early like I planned.

Many mistakes made here.

Looking for a good place to park my cash and get some sleep. Think I will try GMST, CREE, ELON, and WIND for starters. Still agressive but diversified. $80-$340 in a couple of months. Could have done better but could have given into panic and done much much worse.

Sanity returns.


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