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Bfbusa

In a Pickle

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Hello,

 

I kike yo get your opinion on how to best manage this situation. I went long the ES on Dec. 28 when they announced the fiscal cliff resolution was agreed upon. I took advantage of that sudden drop as a buying opportunity. When Dec 31 came around the market gaped up but fearing a retracement I shorted the ES in another account hoping the gap would fill, it didnt and now I have a long and a short on the ES locking in a 23 point gain.

 

Should I close out for profit or wait for another extreme move, take profit in one and trail the other.

 

Your thoughts please. Thank you.

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you have already closed out the exposure on the position - ie; you have none except that if the accounts are at two different firms third party risk- , and now you have merely tied up two margins, are paying any interest differential on longs or shorts (DR/CR), unless they offer some sort of related account portfolio offsets, if there are any.

 

To completely eliminate the risk - exit both positions at ideally the same price - you might have to cross the spread and pay a few $ in brokerage.

Otherwise why keep two positions open with no further upside?

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Hey Dude,

 

I can understand your response given the way I put the question, but I'm way past the basics.

 

I've been trading futures for a few years now and have a couple of setups that have worked

 

well.

 

I was attempting a"box" trade on this one with the rationale that the gap was appearing to fill from

 

previous close.

 

It didn't so now my plan will be to hold till I see signs of a reversal, sell the long and trail. If one doesn't come soon, I'll just close the position. Not the best strategy, I know but I already have a nice profit in the long side so I wont walk away empty handed.

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My thoughts are that you should learn what you're doing first before entering any more positions.

 

Take the advise given above, then go learn the basics.

 

You are too kind... I cannot find a more gentle ways to say UDKWTFUAD.

Trading is a lesson in humility.

Either one humbly learn it from an old salt, or humbly learn it from the market.

Such is the beauty of trading.

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