Monday, January 31, 2011

Taking profits in ZB

Staying true to yesterday's post IN THE MONEY TRADES: Managing ZB Position and closed out ZB today sooner than originally planned. I'm going to lighten my max exposure to 3 contracts from a previous of 5 until I see how things shake out. I'm willing to leave some potential profits on the board in exchange for peace of mind. I just entered with three shorts on Friday and by this morning I had already found myself watching the 1-minute bar charts where as I usually just watch the daily. I also set my alarm on Sunday to start watching at 3pm PST when the futures markets opened. That tells me I was too heavily invested in this trade from a psychological standpoint. So I'm happy to take some profits and lighten the risk exposure as well. I'm still short a FEB 122 Call and have orders to short the futures at 121'16 and 122. Update: Literally before I could even finish posting this trade my last order was filled to cover at 120'16. This also means I left $1,000 on the board from the (2) I closed out just 60 minutes ago at 121'00. That hurts, but again I found myself too heavily involved so I needed to step back and regroup.

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