After KLIC's sharp surge this week following its impressive earnings, I decided to lock in 70% of the profits from my position. The earnings beat clearly validated the company's operational strength, with solid revenue momentum and better-than-expected margins driving renewed market confidence. In situations like this, price often reacts faster than fundamentals can fully justify in the short term, creating an opportunity to manage risk proactively.

The main reason for trimming the position is disciplined capital management. A strong post-earnings rally typically pulls forward future gains, and sentiment can quickly swing once the initial excitement fades. By securing a significant portion of profits, I reduce downside exposure while ensuring that this trade remains a net winner regardless of short-term volatility that may follow.

That said, taking profit does not mean turning bearish on KLIC. The earnings performance reinforces my confidence in the company's longer-term story, particularly its execution and visibility going forward. However, markets rarely move in a straight line, and even high-quality names tend to experience pullbacks after sharp advances as traders rotate or rebalance positions.

Going forward, I will continue to monitor KLIC closely and remain patient for a better risk-reward setup. Should the stock pull back to more attractive levels without a deterioration in fundamentals, I will look for opportunities to collect back the position. This approach allows me to stay aligned with the company's growth potential while maintaining discipline in profit-taking and capital preservation.

As a retail investor, I focus mainly on the US and Singapore markets, combining a mix of technical trading and long-term investing strategies. I enjoy analyzing charts, spotting patterns, and making calculated moves based on both market sentiment and fundamentals. While I'm not a professional, I treat my portfolio seriously and continue to learn and grow with each trade. If you're also navigating the markets and enjoy discussing stocks, options, or market trends, feel free to follow me. Let's learn and grow together as a community.  

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