Comments on: Fear, Greed, Managing Emotions While Trading http://www.fibonaccitrading.com/fear-greed-managing-emotions-trading/ Dominate the Markets with Fibonacci Trading Strategies By Neal Hughes Sat, 11 Jun 2011 15:10:55 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: FibMaster http://www.fibonaccitrading.com/fear-greed-managing-emotions-trading/comment-page-1/#comment-4 FibMaster Mon, 23 Nov 2009 15:02:58 +0000 http://www.fibonaccitrading.com/?p=322#comment-4 Thanks for the excellent input. Hedging with options is great for stock traders, to lock in some gains, reduce risk, and reduce the mental pressure of the trade. At the cost of giving up some profit, the trader can remain in the position for a bigger move. After some experience with that strategy, confidence in the trading method will increase, reducing the stress involved. -Neal. Thanks for the excellent input. Hedging with options is great for stock traders, to lock in some gains, reduce risk, and reduce the mental pressure of the trade. At the cost of giving up some profit, the trader can remain in the position for a bigger move.

After some experience with that strategy, confidence in the trading method will increase, reducing the stress involved.

-Neal.

]]> By: Options Hedge http://www.fibonaccitrading.com/fear-greed-managing-emotions-trading/comment-page-1/#comment-3 Options Hedge Mon, 23 Nov 2009 04:59:06 +0000 http://www.fibonaccitrading.com/?p=322#comment-3 Confidence gets built with time and trading experience. What Justin is experiencing is very typical, and just basic human nature. One of the things that I've found helps get past this stumbling block is to add a hedge to your trade when you start getting nervous. The hedge will limit your profits, but if it makes you comfortable enough to stick with your trade and not pull the trigger to early, it's worth the cost. If you're trading stocks, you can add a bear put spread to your trade by buying an at-the-money put and selling and out-of-the-money put. This strategy is a lot cheaper than just buying a put, but it'll allow you some breathing room to let your trade develop. Confidence gets built with time and trading experience. What Justin is experiencing is very typical, and just basic human nature. One of the things that I’ve found helps get past this stumbling block is to add a hedge to your trade when you start getting nervous. The hedge will limit your profits, but if it makes you comfortable enough to stick with your trade and not pull the trigger to early, it’s worth the cost.

If you’re trading stocks, you can add a bear put spread to your trade by buying an at-the-money put and selling and out-of-the-money put. This strategy is a lot cheaper than just buying a put, but it’ll allow you some breathing room to let your trade develop.

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