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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.
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