My target was 240, profit taking. I'm over exposed enough to semis anyway. A brief explanation of the C-R-V, the risk/reward ratio.

I keep getting told that I'm selling far too early. But very few people understand that the tactic of an active trader is NOT to always buy the bottom and sell the top. The aim is never to make the maximum profit. The goal is to make constant profits with as little risk as possible, with as high a chance as possible and avoiding large drawdowns. Everything is based exclusively on a CRV ratio.

In the example here NXP: https://www.tradingview.com/x/n0dQgi4s/

It broke out beautifully today to an all-time high, triggering a buy signal. So why the fuck did I sell? Well, quite simply:

Would I open a new trade here at this point? No.

Why not? Because the CRV is poor. At most, the target could be stretched to 250 until the stock is so overbought that it is no longer worth entering. That is an upside of $10. The first sensible SL, on the other hand, could only be placed in the $210 range, which corresponds to a downside of $30 (!). That would be a CRV of 0.33! That is extremely bad.

Yes, it may well go even higher now. Maybe even over 250, who knows. However, it is generally more lucrative to try to sell the top in such a strong pump as now and use the money to open a trade somewhere else that has a better CRV again.

With this way of thinking, you definitely don't always have the maximum profit. However, you save yourself big drawdowns and avoid holding on to something for too long and getting caught in such a bad situation, as I did last week in the correction.