RAMBUS : THE STOCK
From Rambus Chartology Today
There are at least 25 more tech stocks from the 1990’s I could show you but this last one I hold near and dear to my heart. Most of the times making a good trade on a stock is a lot of hard work to know when to buy and when to sell and sometimes there is a little luck involved that doesn’t hurt.
RMBS was my last trade in the tech bubble that ended in early 2000. I had traded in and out of this stock many times and knew how volatile it could be. When RMBS broke out from that 6 point blue bullish rising wedge I got on the train just before it left the station or if you prefer backed up the truck and let the market do its thing. Note that massive double top that went from about 130 at the top to about 35 at the double top hump. When RMBS hit the first high it had a 4 for 1 stock split. It was painful but I held on during the decline to the double bottom hump with 4 X as many shares as I had the last time the price action was down at 35. I had no idea that RMBS would rally straight up to the 130 area again in just 2 months time. This time the price action exceeded the previous high by a few points so I called my broker and told him to place a sell/stop at 123 and see what would happens.
This is where a little bit of luck and comes into play. If I had just waited a week or two later to put in that sell/stop I would have missed the best trade of my life. There also comes a point in a life changing trade that the profits are so big that you just say enough is enough, take your profits and hit the exit button with no regrets with what happens afterward. It was like everything came together in that one moment in time that changed my life forever. It was a perfect trade from start to finish that couldn’t have come at a better time as the tech bubble was getting ready to pop. As you can see I got out at almost the exact high by about 10 points or so. That just doesn’t happen especially on a volatile stock like RMBS. The crash came quick and hard which left most investors holding the bag. It has basically been a dead stock for the last 20 years or so but it may be coming back to life as it is making a new multi year high along with many other semiconductor stocks.