Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 2
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.


The fact that many of us think this way demonstrates why it often takes a stock a long time to recover after a significant tank -- everybody is waiting to get back to where they were before the tank, so as the price climbs, sellers jump in to avoid the mistake they think they made of not selling before the tank. I personally think that both RMBS and CRA (my recent tanks) will come back, but it will take a while because so many are waiting to sell once the price recovers.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.